Mexican neobank Albo raises $7.4 million

Mexican neobank Albo raises $7.4 million

Mexican neobank Albo has raised $7.4 million in Series A funding as it moves to exploit new rules aimed at regulating the fintech sector and using digital banking services to boost financial inclusion.

Launched in 2016, Albo, offers  consumers a digital account and smart budgeting app alongside a prepaid Mastercard to receive, transfer, and spend their  money.

The funding round, led by local VC Mountain Nazca and joined by Omidyar Network, and Greyhound Capital, comes in a crucial moment for Albo, since Mexican  fintech companies will face new challenges due to new regulatory processes to take effect  this year. 

Hector Sepulveda, cofounder and managing partner of  Mountain Nazca, says: "Among the opportunities in the fintech sector in Mexico, we have  identified Albo as the one with wider potential impact in the country and are convinced that  Albo will be the leading challenger bank and the solution that will move the needle on  financial inclusion in Mexico." 

Only 47% of the Mexican population among 17 to 70 years old has access to a bank  account. Excessive fees and predatory practices have been a target of proposed legislation, including a move to account data sharing via Open Banking, to improve competitiveness in the traditional financial sector.  

“With this investment, we want to take Albo to every corner of the country and enhance our  products so that every person in Mexico can have access to a personalised, fair, and 100%  digital financial experience when it comes to getting financially healthy”, says Ángel  Sahagún, CEO and founder of Albo. "This round of funding will help to significantly advance  that goal, coming in at perfect timing, helping us comply with new government regulations,  which validate the fintech sector." 

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