The strategic investment throws more light on the banking giant’s budding consumer banking strategy
Image source: Photo by Kaique Rocha from Pexels
JPMorgan Chase will take a 40 per cent stake in the full-service Brazilian digital bank C6, according to a statement by the firm.
The deal, which is still subject to regulatory approvals, did not mention financials but C6 was last valued at over $2bn when it raised funding in December 2020.
It is the latest consumer fintech play by JP Morgan Chase, by many measures the largest bank in the world, following its reported £700m deal to buy UK-based digital wealth manager Nutmeg.
Brazil and its wider central and south American is a vast opportunity for fintech, demonstrated by the standout leader in the space Nubankl which claims c.40 million customers across a number of markets. More than 60% of banking transactions in Brazil are conducted digitally, a statistic that has risen steadily in recent years.
C6 launched in 2019 and now has more than 7 million customers on its digital platform.
It offers multi-currency current accounts, savings accounts, debit and credit cards, travel and loyalty programs, investment and lending products and also operates in the small business banking market.
“We’re excited to be partnering with one of Brazil’s fastest growing digital banks,” said Sanoke Viswanathan, CEO of International Consumer for JPMorgan Chase.
“We’ve admired C6 Bank, its management team and their strategy for some time. With an impressive platform and product suite, they are well-positioned to sustain their growth trajectory and build a strong franchise. We look forward to supporting C6 Bank in its aspiration to be a long-term winner in the Brazilian banking market.”
“Partnering with JPMorgan Chase, a global leader in financial services and a trusted name in retail banking, is a game-changer,” said Marcelo Kalim, CEO and co-founder of C6 Bank. “With their support, we will invest and scale our business in a way that continues to provide Brazilian customers with best-in-class digital banking products to help them accomplish their goals.”