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Colombia is the fourth market in which IHC has expanded its investment activities this year after the UK, India and Turkey.
Abu Dhabi-based International Holding Company (IHC) injected an equity investment of 734 million dirhams ($200 million) into Lulo Colombia, the corporate holding company of Colombia’s first regulated virtual bank, Lulo Bank, one of its subsidiaries.
Founded by Colombian businessman Jaime Gilinski, Lulo Bank is the first digitized bank in Colombia. It has enrolled more than 120,000 active users since its launch in June this year and is expected to complete more than 200,000 user applications by the end of 2022.
The bank aims to succeed in a one-million visitor base in Colombia within the next 3 years.
Syed Basar Shueb, CEO of IHC, said: “The fintech ecosystem in Latin America has grown over the past two years with sustained expansion noted in all segments and in the number of active fintech companies, especially virtual banking which has noticed the greatest expansion at an average annual rate of 57% between 2017 and 2021 to achieve 60%.
“In the case of Colombia, it has made significant progress in terms of monetary inclusion with the accumulation of monetary products at 87%. It is critical for us to align any transaction with our expansion strategies, whether to gain new functions or consolidate, and Lulo Colombia fits very well with our expansion plans in Latin America.
Benjamin Gilinski, Chairman of Lulo Bank, said: “Digital banking has come a long way in Colombia. Adopting new behaviors and technologies takes time, but it has already drastically replaced the way consumers interact with monetary products in our market. The monetary corporations that will ultimately win those who perceive that the human habit is constantly becoming and continue to invest in new technologies. We are delighted that IHC is joining our project to revolutionize the monetary landscape in Latin America.
The Colombian marketplace is the fourth marketplace in which IHC has expanded its investment activities this year after the United Kingdom, India and Turkey.
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