Digital bank Revolut has announced its acquisition of Banco Cetelem Argentina, a modest local lender owned by French banking giant BNP Paribas.
This deal marks Revolut’s entry into Argentina, South America’s second-largest economy, and underscores its strategy to penetrate emerging markets.
The acquisition, reported by Bloomberg, includes Banco Cetelem’s banking license and its approximately $6.4 million in assets, positioning Revolut to establish a formal presence in Argentina’s evolving financial sector.
Banco Cetelem ranks among the smallest of Argentina’s 73 financial institutions, according to March data from the Central Bank of Argentina.
Despite its size, the acquisition is strategically vital for Revolut, as it provides an immediate banking license, bypassing the lengthy process of obtaining one from scratch.
This move aligns with Revolut’s broader goal of securing regulatory approvals worldwide, with at least 10 banking license applications currently in progress globally.
The company holds a restricted banking license in the United Kingdom and a full license in Mexico, and this latest acquisition strengthens its Latin American expansion plans, following its recent operations in Brazil and plans for Colombia.
The acquisition comes at a pivotal moment for Argentina’s financial sector, which is undergoing a transformation driven by President Javier Milei’s economic reforms.
These reforms, including interest rate reductions and partial relaxation of capital controls, have spurred a credit boom, with private-sector lending growing by 53% in real terms in 2023, according to the Association of Argentine Banks (Adeba).
This environment has created a supportive environment for foreign fintechs like Revolut to capitalize on rising demand for digital financial services, particularly as mobile payments gain traction and financial inclusion becomes a priority.
Revolut’s entry into Argentina sets the stage for a competitive clash with regional heavyweights such as Mercado Pago, Ualá, and traditional banks like Santander and Galicia.
The company aims to differentiate itself by offering tailored financial products, including multicurrency accounts, fee-free peer-to-peer transfers, foreign exchange services, budgeting tools, and credit and investment products.
With over 60 million customers worldwide and a valuation of $45 billion, Revolut is positioned to make significant contributions to Argentina’s fintech sector, leveraging its global infrastructure and innovative product portfolio to address gaps in access to credit and modern banking solutions.
To spearhead its Argentine operations, Revolut has appointed Agustín Danza, a former Mercado Pago executive, as its local CEO, signaling a commitment to understanding and adapting to the local market.
The company has already initiated the regulatory approval process with Argentina’s Central Bank, a necessary step for finalizing the acquisition.
Revolut outbid other interested parties, including Southern Cross Group and brokerage firm Criteria, in a competitive tender process, highlighting its determination to secure a foothold in the region.
Notably, Argentina’s fintech ecosystem is thriving, fueled by increasing smartphone penetration and a shift toward instant payment systems like MODO.
However, Revolut’s CEO, Nik Storonsky, has previously acknowledged that growing without banking licenses was a strategic misstep, as smaller firms often face fewer hurdles in obtaining them.
By acquiring Banco Cetelem, Revolut avoids these challenges and accelerates its expansion in a market ripe with opportunity.
As Revolut prepares to compete in Argentina’s financial sector, its acquisition of Banco Cetelem represents more than just a market entry—it signals a broader trend of European fintechs targeting high-growth emerging markets.
With its innovative approach and robust global presence, Revolut is poised to reshape how Argentinians manage their finances, offering a modern alternative to traditional banking and local fintech competitors.
The success of this venture could pave the way for further expansion across South America, solidifying Revolut’s position as a global fintech company.