Nubank, the digital bank boasting over 100 million customers across South America, has selected a regulatory reporting solution from capital market tech provider Nasdaq, ‘AxiomSL’, to fulfil reporting obligations in Colombia and ensure compliance.
The new agreement extends an existing partnership between Nasdaq and Nubank, with the bank leveraging technology to manage its fixed-income and money market operations. Through the partnership, Nasdaq is also expanding its digital bank financial technology presence in Latin America.
Latin America’s financial and fintech scene has undergone a significant transformation, with the number of fintech startups established over the last six years growing by over 340 per cent. Meanwhile, cash has been overtaken as the preferred payment method in the region, as many consumers switch to digital payments – largely driven by Latin America’s young demographic.
In response to this shift, the region’s regulators are aiming to unlock new areas of open finance and digital banking through rule changes. However, the regulatory environment remains deeply complex for companies.
Requirements in Brazil typically focus on the types of products and services offered; while Mexico has a specific licence for fintechs. Meanwhile, in Colombia, several small and digital banks operate as a ‘Financing Company’, which carry different requirements to ‘Banks and Financial Corporations’.
With regulatory fragmentation showing no signs of lessening, many traditional and digital banks are turning to third-party technology providers to meet their regulatory needs.
Ed Probst, SVP of regulatory technology at Nasdaq
Ed Probst, SVP of regulatory technology at Nasdaq, said: “Digital banking services in Latin America are experiencing a period of extraordinary development, with online marketplaces, open banking and innovative technology combining to empower a new generation of consumers.
“Nasdaq’s technology is helping to underpin the maturation of the industry, with proven regulatory solutions substantially reducing time to market and providing a competitive advantage in such a fast-paced industry. We welcome the opportunity to expand our partnership with Nubank, alongside many other clients in the region, to support their ambitious growth trajectory.”
Servicing Latin America
Nasdaq services over 50 banking and payment services clients in Latin America. It provides its Nasdaq AxiomSL solution to support financial and regulatory reporting requirements across 55 countries and 110 regulators. It also offers Nasdaq Calypso, a SaaS technology platform that underpins banks’ treasury, risk, and collateral management workflows.
In the last 12 months, over half of Latin American clients adopting Nasdaq’s AxiomSL and Calypso technology have sought to expand their partnership, alongside strong growth in new customer numbers.
In addition to Nubank, which covers Brazil, Mexico and Colombia, Nasdaq has expanded its services to other digital bank and payment companies in Latin America. These include Mercado Libre, the Latin America-based e-commerce and digital payments company; C6 Bank, a full-service digital bank in Brazil, and Bankaool, the first bank to receive a licence from the Mexican government to provide digital-only services.
As a scaled platform partner, Nasdaq draws on deep industry experience, technology expertise, and cloud-managed service experience to help over 3,500 banks, brokers, regulators, financial infrastructure operators, and buy-side firms solve operational challenges while advancing industrywide modernisation.
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