Spanish banking giant BBVA invests $300m in Brazilian neobank Neon
Spanish financial services company BBVA has invested $300 million in Brazilian digital bank Neon, as it seeks to gain a foothold in the country’s booming retail banking sector.
BBVA has acquired a 21.7% stake in Neon, which, on top of its prior 2018 investment, brings its stake to 29.7%.
The firm says the investment “represents a new step” in its strategy to enter new markets through investments in digital platforms.
“The commitment to innovation is part of BBVA’s DNA, and digital is opening new ways for us to grow in very attractive markets,” says BBVA chairman Carlos Torres.
Founded in 2016, Neon wants to broaden financial inclusion in Brazil, supporting individuals, the self-employed and SMEs in the country. It provides free checking accounts, debit and credit cards, payroll loans and additional products for small businesses.
“Neon’s value proposition connects with the financial needs of Brazilians serving as a platform to continue to grow rapidly in a market with great potential,” Torres adds.
Neon’s founder Pedro Conrade says: “BBVA’s investment and global expertise will allow Neon to offer loans in a more simple, sustainable and inclusive way.
“We want to reach more Brazilians, contributing to reducing inequalities and making a difference in their lives.”