The first digital bank on Panamanian cell phones continues to expand. This is none other than Nequi, a platform that lets you manage electronic money.
As reported by Enterate, the company and Universidad Latina held the first-ever Fair without Cash in order to demonstrate the possibilities available through the digitization of cash.
At the event, students made their payments through Nequi and were able to experience what it’s like to interact in a non-cash environment.
The pilot tests of the first Panamanian digital bank began this past April. The venture is associated with Banistmo, which is part of the Bancolombia Group. The test has 1,000 “digital account holders” and has already secured approval from the Superintendency of Banks of Panama (SBP), which allowed the bank entry to the market as a simplified savings account.
Digital banking that’s accessible to all
Nequi lets you activate an account from a mobile phone. The services include sending and receiving money between contacts, managing it and making purchases without any charges or fees. Nequi also offers functions that help you to monitor and even save money.
One of its features is a face recognition biometric solution to provide better security for transactions. When a user opens an account, he or she must take a photo of themselves to activate the facial recognition feature. The technology includes proof of life with snapshots of users each time they switch devices or SIM cards, reset their passwords or reactivate an account.
The money and digital banking solution is the first Fintech endorsed by the Superintendency of Banks. During its initial stages, the company has been focused on a financial education campaign to demonstrate the benefits of the product. For this particular objective, college students are an essential potential audience.
The fact that young people are so drawn to technology should amount to a greater penetration of smartphones. According to a study commissioned by Telefónica de Panama, Panama is the most technological of all Central American countries. Out of those surveyed, 62% have a smartphone, compared to 59% in Guatemala, El Salvador and Costa Rica.
Some of the benefits that deserve special mention include the option for parents to send money to their children for college expenses from inside the country, and collecting money for group work or college projects involving friends.
A digital bank for Central America
You can download the application on your phone and it lets you make payments in stores. There are about 900 “Nequi” locations and it is projected that by April there will be roughly 3,000 locations.
For the time being, each account can have up to $1,000 per month in deposits and can record transactions of up to $1,500.
The financial platform has also been operating in Colombia since last year. The application allows you to withdraw money from 1,600 Bancolombia ATMs, and pay at over 7,000 credit card terminals showing the QR code.
Representatives from the company have not ruled out future launches in other Central American countries. Among them is Mexico, a very competitive market with several similar offers in play. Download this free infographic for more information on the future of mobile money in the region.
In Colombia, the platform also incorporated interacting with a virtual assistant in Messenger, the instant messaging service on Facebook.
The M2Banking & Fintech Latam event, which specifically focuses on the regional banking and financial services landscape, will be held next month.
Hosted by Frecuencia Latinoamérica, the eighth annual conference will be held from July 18 to 20 in Silicon Valley and will last for three days, with two dedicated to issues on commerce, payments and fintech, and mobile banking.
