Abu Dhabi’s IHC enters South America with $200m investment in Colombian digital bank

Abu Dhabi Group International Holding Company (IHC) Entered the South American market with an AED734 million ($200 million) investment in a Colombian company.

Through its subsidiary IHC Capital Holding, the company acquired a 49.99% stake in Lulo Colombia, the first regulated holding company in Colombia digital bankingLulo Bank, IHC in a Regulatory filing Head to the Abu Dhabi Stock Exchange for stock trading on Monday.

The transaction is subject to regulatory approval, and for IHC “Any transaction, whether acquiring new capabilities or integrating, is consistent with our growth strategy, and Lulo Colombia is very much in line with our expansion plans in Latin America”, Syed Shueb, said the CEO of IHC.

Lulo Bank is the first fully digital bank in Colombia and has plans to expand into other Latin American markets.

Colombia has made “significant progress” in financial inclusion as access to financial products has increased, Mr. Shueb said.

The move comes as fintech services are gaining traction during the Covid-19 pandemic. Lockdowns and social distancing around the world have accelerated the shift to digital financial and banking services as consumers move to cashless payments and online shopping.

new bankCompanies that are 100% digital and use apps and online platforms to support their customers have grown rapidly in the US, Europe, Middle East and Southeast Asia in recent years.according to a Tracker financial brand After publication, there are at least 333 new banks worldwide, including digital-only businesses from start-ups and traditional players.

Colombia is the fourth global market for IHC to expand its investment activity this year after the UK, India and Turkey.

Majority-owned by Abu Dhabi-based PAL Group of Companies, IHC is rapidly expanding its portfolio through local and global acquisitions and investments, and now has more than 30 entities and 52,345 employees.

It is diversifying its holdings to include real estate, agriculture, healthcare, food and beverage, utilities, industrials, IT and communications, retail and leisure, and capital.

In India, Asia’s third largest economy, IHC completed a AED7.3 billion investment deal with India’s Adani Group Led by billionaire industrialists Gautam Adani.

Launched in 2020, Lulo Bank is a mobile banking app that offers money transfers, savings accounts, loans and other financial services.

Since its official launch in June this year, the bank has registered more than 120,000 active users and plans to complete more than 200,000 applications by the end of the year, the statement said.

It aims to reach a customer base of 1 million in Colombia within the next three years.

“This Fintech The Latin American ecosystem has risen rapidly over the past few years, with continued growth in all sectors and the number of active fintech companies, especially digital banking,” said Mr Shueb.

“Digital banking has come a long way in Colombia. We are delighted that IHC is joining our mission to revolutionize the financial landscape in Latin America,” said Benjamin Gilinski, chairman of Lulo Bank.

Updated: 10/10/2022 3:18pm