Lulo Bank is the first regulated digital bank in Colombia
International Holding Company (IHC), the diversified Abu Dhabi-based conglomerate on Monday announced a capital investment of AED 734 million ($200million) in Lulo Colombia, which is also the holding company of the first regulated digital bank in Colombia, Lulo Bank S.A. via one of IHC’s holdings.
Lulo Bank is the first regulated digital bank in Colombia which through its technology offers simple and agile financial services designed to make users use its services effectively.
One of the flourishing banks and a brand-new participant entering the area of neobanks in the Colombian market, Lulo Bank was established by Jaime Gilinski, a Colombian businessperson with over 45 years of banking experience in Latin America, Europe, and North America. It now intends to spread out into other Latin American markets.
According to IHC, Colombia is the fourth global market in which IHC has extended its investment endeavors’ during the current year following the United Kingdom, India, and Turkey.
Noting the strategic acquisition, Syed Basar Shueb, CEO and Managing Director of IHC said that the fintech ecosystem in Latin America has mounted swiftly over the past couple of years with sustained growth experiential in all segments and in the number of active fintech businesses, particularly digital banking which has observed the most considerable development at an average annual rate of 57% between 2017 and 2021 to attain 60%.
In terms of financial inclusion with the increase in access to financial products, Colombia has made considerable progress which rose to 87%, stated Sheub.
It is significant for IHC to align any transaction with their growth strategies, whether to acquire new capabilities or consolidate, and Lulo Colombia is positioned very well with their expansion plans in Latin America, Sheub added.
Lulo Bank is Colombia’s first digitalized bank that has authorized over 120,000 active users since it was unveiled in June and is set to complete more than 200,000 users’ applications by year-end. The bank intends to accomplish a customer base of one million in Colombia within the next three years.
Chairman Benjamin Gilinski said that Digital banking has sustained a long way in Colombia. Implementation of new behaviors and modern technologies takes time, but it is by now significantly changed how consumers interact with financial products in the market.
Gilinski noted that the financial businesses that prevail in the forthcoming years will be those that realize that human behavior is constantly transforming and keep on investing in modern technologies. The company is delighted to have IHC join its mission of revolutionizing the financial landscape in Latin America.
Earlier in the year, Lulo received the esteemed iF Design Award 2022, a global design award in the interfaces for Digital Media category. This is the first time a business in the financial sector has received this recognition in Colombia. In the earlier period, the iF Award has honored huge brands like Apple and Google, Gilinski added.
About International Holding Company (IHC)
IHC is one of the fastest-growing holding companies in the Middle East with their investments are not just business-led, they are centered on impacting the world by creating opportunities, creating ideas better, and accomplishing the best for communities, governments, and people. Everything the company supports is synchronized with its drive to enhance businesses that improve lives.
Encompassing over 372 entities and 52,345 workforce personnel, IHC seeks to expand and branch out its holdings across a growing number of sectors, involving Agriculture, Real Estate, Food and Beverage, Healthcare, Utilities, Industries, IT and Communications, Retail and Leisure, and Capital.
IHC is concentrating on developing a global ecosystem that fosters growth opportunities, technology, and innovation for its companies, shareholders, and the nation-state.
About Lulo Bank
A subsidiary of IHC Capital Holding, Lulo Bank is a provider of banking services and a developer of an application based in Bogota, Colombia. The company offers account opening, debit cards, credit cards, and money transfers, facilitating customers’ banking needs are complied with. Lulo Bank was founded in the year 2020 and authorized over 120,000 active users since it was unveiled in June.