Scotiabank, QED Investors partner to boost Latin American fintech companies

Scotiabank, the Canadian international bank, and QED Investors, a VC firm based in Alexandria, VA, have partnered to build capital and industry expertise into select Latin American fintech companies.

According to the official release, the joint investment will create a venture capital platform that will identify, invest and promote the growth of innovative start-ups across the fintech spectrum that look to improve customer products and experiences in Latin America.

“We see significant opportunities for FinTechs in Latin America, and look forward to leveraging our entrepreneurial and operational expertise to the companies we will invest in,” said Bill Cilluffo, a Partner in QED Investors responsible for Latin America. “Scotiabank is a natural partner for this fund due to its strong presence in the region and its ambitious digital transformation agenda.”

QED Investors will serve as the manager of the fund. It will bring its deep expertise in the financial services sector and a track record of building groundbreaking fintech businesses. Scotiabank will assist QED Investors in its evaluation of potential strategic investments in the Pacific Alliance countries (Mexico, Chile, Colombia and Peru) and bring strategic funding, resources, customers and experience in these markets. This fund will seek out companies in Latin American countries focused on financial technology disruptors.

“We are excited to partner with QED Investors as their experience and deep understanding of customer trends, FinTech business models and digital disruption will help us bring leading edge best practices in innovation to our customers,” said Ignacio (Nacho) Deschamps, Group Head, International Banking and Digital Transformation at Scotiabank. “With QED’s hands-on FinTech experience, we will be uniquely positioned to partner with the emerging ecosystem of FinTechs in Latin America. The business models of FinTechs are attractive to consumers and an opportunity for us to learn, invest and partner.”

Scotiabank has been active in the fintech landscape for quite some time. Among other things, the bank has created digital factories in Toronto, Mexico, Chile, Colombia and Peru, to build world-class digital customer experiences; invested in emerging areas such as analytics and machine learning including direct investment in innovative FinTechs like Kabbage and SecureKey.

QED Investors has made investments in the US and the international fintech industry, notably in Credit-Karma, Green Sky and many others. Over the last two years, QED has independently built a successful Latin American portfolio, including NuBank, Guiabolso, Pitzi, Bankfacil in Brazil, and has recently expanded this model to Mexico through its investment in Konfio.