JPMorgan Chase, the largest bank in the US and sixth-largest in the world in terms of assets, has reportedly acquired a minority stake in FitBank, a Brazilian Fintech firm. The amount paid by the bank for the part acquisition hasn’t been shared publicly.
Established in 2015, FitBank claims it’s one of the largest Open Banking platforms in Brazil. The company offers a white-label solution that allows financial service providers to handle bill payments, manage their online treasuries, take care of routine financial management tasks, process transfers and manage escrow services.
Around 96 clients have reportedly used the Fintech firm’s technology for managing about 180,000 different accounts. FitBank said it would use the funds raised to expand into emerging Fintech and digital banking markets such as Latin America, which has recently seen more active involvement from Mexico.
In statements shared with Citywire, Renata Vilanova Lobo, head, wholesale payments, Brazil, JPMorgan (who has now joined the FitBank board of directors). noted:
“The strategic investment in FitBank is an important addition to sustaining and growing our leadership in wholesale payments within Latin America.”
“Our clients, both local corporates and international MNCs, are looking to JP Morgan to help simplify digital payments in the region and provide them access to the various new payment types unique to Latin America.”
João Chacha, a managing partner at FitBank, said that the Fintech company will be focused on expanding its line of products and services and will aim to serve its “core target clients” in Brazil and in the larger Latin American markets in the future.
JPMorgan CEO Jamie Dimon had published his annual letter in April 2020 to investors that typically deals with the performance of JP Morgan Chase (NYSE:JPM).
The legendary banking executive had said that the US has the resources to emerge from COVID-19 as a stronger nation.