Revolut Ltd, Europe’s largest digital bank, is acquiring Argentina’s Banco Cetelem, a small local lender owned by BNP Paribas, according to two people with direct knowledge of the matter.
Cetelem is one of the two smallest banks among 73 in Argentina’s financial system, according to Central Bank rankings as of March, with about US$6.4 million in assets. London-headquartered Revolut’s purchase would include both Cetelem’s banking licence and the transfer of those assets, according to the people, who asked not to be named discussing an ongoing acquisition. The value of the transaction couldn’t immediately be learned.
Revolut declined to comment, while BNP’s press office didn’t immediately reply to a request. Argentina’s Central Bank declined to comment.
Revolut has already begun the regulatory process with Argentina’s monetary authority, according to the people, as it oversees and must approve any purchase of a banking institution. The financial technology company participated in a bidding process alongside other interested parties, including Southern Cross Group — led by businessman Norberto Morita — and brokerage firm Criteria, one of the people said. Revolut has also started hiring for roles to lead its operations in Argentina, including Augustín Danza as chief executive officer.
The move marks Revolut’s first step into South America’s second-largest economy, as it seeks to obtain a banking licence that would anchor its expansion in the country’s financial system. President Javier Milei’s sweeping economic overhaul is beginning to reshape Argentina’s banking landscape, offering new opportunities for foreign players.
Milei’s libertarian government has slashed fiscal spending, lifted capital controls on some transactions, and halted money printing, triggering a sharp slowdown in inflation. At the same time, rising real wages in some sectors have fuelled a rebound in consumer lending, improving profitability across the banking sector. That shift has led to a surge in loan demand and a brighter outlook for financial institutions after years of crisis-driven stagnation.
In recent months, several capital-market players and fintech firms — including Allaria Asset Management LLC, Ualá, MercadoLibre Inc, and former Citigroup Inc wealth-management executive Eduardo Savastano — have expressed interest in obtaining banking licences to align their business models with the country’s shifting financial landscape.
Revolut, which was founded in 2015 and recently valued at about US$45 billion, is one of the largest and fastest-growing fintechs in the world with 60 million global customers.
The company is now aggressively pursuing new permits across geographies, including via acquisitions, with at least 10 other applications underway globally. It already has a restricted banking licence in the United Kingdom and a bank licence in Mexico.
Revolut boss Nik Storonsky has previously said growing the business without bank licenses was a mistake, and that a smaller company would have found it easier to gain licenses than a firm the size of Revolut today.
The company would arrive amid a credit boom in Argentina after Milei’s reforms, which included interest rate cuts, allowed banks to offer home mortgages for the first time in years. Private sector credit, meanwhile, posted its strongest expansion in over three decades last year, growing 53% in real terms, according to Adeba, the association that represents local banks.
Still, Revolut will face fierce competition from regional firms like MercadoLibre and Ualá, as well as other fintech companies that are widely used by consumers for retail spending as well as a range of transactions from paying bills to topping up subway cards.
by Ignacio Olivera Doll & Aisha S Gani, Bloomberg
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