The Argentine company with the highest market capitalization does not rule out creating a new banking company from scratch. However, it has not yet requested authorization from the BCRA.
Mercado Libre, one of the few Argentine “unicorns”, analyzes entering the banking business at the local level. Although the possibility is latent, the company assured Scope that there is nothing concrete yet.
“The decision to operate as a bank in Argentina is not ruled out, but today there is no definition. It is under evaluation, it is something that we evaluate in all markets but currently we do not initiate, nor do we request authorization to acquire a banking license,” they said in dialogue with this medium.
Mercado Libre is a leader in the e-commerce and digital finance industry, with operations in 18 countries and a market capitalization of US$96 billion, the highest for an Argentine firm. Being a fintech, it has the advantage of having fewer legal regulations to follow in relation to a bank, although it also has limits such as the impossibility of taking deposits from people to grant loans.
In Mexico, the company recently submitted documentation to the regulator to operate as a bank.a process that is expected to take between a year and a half to two years. In Argentina, to create a bank from scratch, this authorization must be granted by the Central Bank (BCRA). The other path is to acquire an existing financial entity, something that does not seem to fit Mercado Libre’s intentions.
“We are more builders than buyers, just as we did in Mexico and Brazil”they explained from the company. If it comes to fruition, Mercado Libre will not be a traditional bank, with commercial advance and over-the-counter in branches, but rather one with mobile services and applications.
Source: Ambito
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