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Citigroup (C) Enters Latin America FX Space, Invests in Rextie
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Setting foot into Latin America's fintech space, Citigroup Inc. (C - Free Report) recently made a strategic investment in Rextie, Peru’s leading fintech for foreign exchange (FX) platform. The investment was executed by Citigroup's Institutional Strategic Investments arm, which focuses on investing in cutting-edge fintech businesses around the world that are strategically aligned to C's institutional businesses.
The move indicates that fintech companies and banks can work together to bring new and innovative financial services to the region.
With this latest development, Rextie has becomes Latin America's first FX fintech company to receive capital investment from one of the world's largest banks. Rextie offers forex services digitally to 12,000 medium and small enterprises in Peru, and 170,000 individual clients. It also offers factoring and payment processing services to businesses.
Citigroup's advanced FX technology will be integrated into Rextie's currency exchange services. Moreover, Rextie's clients will benefit in terms of its automated services, real-time payments, greater liquidity and competitive rates through CitiFX pulse and Instant Payments.
David Gonzalez, regional head of corporate sales and solutions for Latin America at Citigroup, stated, “This is a landmark transaction for Citi in Peru, our collaboration with Rextie shows the value-added opportunities that we can provide to fintechs. We are excited to deliver the power of our global FX network and tech solutions.”
Rextie expects to record more than $7 billion exchanged on its platform by year-end 2024 since the start of its operations in Peru. Amid this, the latest investment from Citigroup will likely help it achieve its target.
Mateu Batle, CEO and co-founder of Rextie, commented, "Going forward, Rextie will focus its efforts on attracting more small and medium-sized business, including customers involved in import and export activities. Also, we will accelerate our growth supported by our experience, the knowledge and specialized technologies that will be empowered by Citi."
Recently, Citigroup has simplified the banking process by introducing Relationship Tiers. This, along with retiring account packages, has enabled the enhancement of customer experience. New customers can immediately avail benefits of these services, while C will initiate the conversion of its existing customers to its simplified banking processes in 2024.
Over the past three months, shares of C have declined 7.9% against the industry’s upside of 3.3%.
BlackRock, Inc. (BLK - Free Report) has completed its previously announced agreement to acquire London-based Kreos Capital, a leading provider of growth and venture debt financing to companies in the technology and healthcare industries.
The financial impact of the transaction (announced this June) has no material impact on BlackRock's earnings.
Glacier Bancorp, Inc. (GBCI - Free Report) entered into a definitive agreement to acquire Community Financial Group, Inc. ("CFGW") to bolster its presence in the growing market of Eastern Washington. This marks its 13th announced transaction in the past ten years and the 25th acquisition since 2000.
Per the agreement terms, shareholders of CFGW will receive 1.0931 shares of Glacier stock for each CFGW share they hold upon closing of the transaction, which is expected to materialize in the fourth quarter of 2023, subject to regulatory approval, CFGW shareholder approval and customary closing conditions.
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Citigroup (C) Enters Latin America FX Space, Invests in Rextie
Setting foot into Latin America's fintech space, Citigroup Inc. (C - Free Report) recently made a strategic investment in Rextie, Peru’s leading fintech for foreign exchange (FX) platform. The investment was executed by Citigroup's Institutional Strategic Investments arm, which focuses on investing in cutting-edge fintech businesses around the world that are strategically aligned to C's institutional businesses.
The move indicates that fintech companies and banks can work together to bring new and innovative financial services to the region.
With this latest development, Rextie has becomes Latin America's first FX fintech company to receive capital investment from one of the world's largest banks. Rextie offers forex services digitally to 12,000 medium and small enterprises in Peru, and 170,000 individual clients. It also offers factoring and payment processing services to businesses.
Citigroup's advanced FX technology will be integrated into Rextie's currency exchange services. Moreover, Rextie's clients will benefit in terms of its automated services, real-time payments, greater liquidity and competitive rates through CitiFX pulse and Instant Payments.
David Gonzalez, regional head of corporate sales and solutions for Latin America at Citigroup, stated, “This is a landmark transaction for Citi in Peru, our collaboration with Rextie shows the value-added opportunities that we can provide to fintechs. We are excited to deliver the power of our global FX network and tech solutions.”
Rextie expects to record more than $7 billion exchanged on its platform by year-end 2024 since the start of its operations in Peru. Amid this, the latest investment from Citigroup will likely help it achieve its target.
Mateu Batle, CEO and co-founder of Rextie, commented, "Going forward, Rextie will focus its efforts on attracting more small and medium-sized business, including customers involved in import and export activities. Also, we will accelerate our growth supported by our experience, the knowledge and specialized technologies that will be empowered by Citi."
Recently, Citigroup has simplified the banking process by introducing Relationship Tiers. This, along with retiring account packages, has enabled the enhancement of customer experience. New customers can immediately avail benefits of these services, while C will initiate the conversion of its existing customers to its simplified banking processes in 2024.
Over the past three months, shares of C have declined 7.9% against the industry’s upside of 3.3%.
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Currently, Citigroup carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Expansion Efforts by Other Firms
BlackRock, Inc. (BLK - Free Report) has completed its previously announced agreement to acquire London-based Kreos Capital, a leading provider of growth and venture debt financing to companies in the technology and healthcare industries.
The financial impact of the transaction (announced this June) has no material impact on BlackRock's earnings.
Glacier Bancorp, Inc. (GBCI - Free Report) entered into a definitive agreement to acquire Community Financial Group, Inc. ("CFGW") to bolster its presence in the growing market of Eastern Washington. This marks its 13th announced transaction in the past ten years and the 25th acquisition since 2000.
Per the agreement terms, shareholders of CFGW will receive 1.0931 shares of Glacier stock for each CFGW share they hold upon closing of the transaction, which is expected to materialize in the fourth quarter of 2023, subject to regulatory approval, CFGW shareholder approval and customary closing conditions.