Wanap, Argentina's first fully digital bank, is finalizing details so that it can start operations in May, Infotechnology reported, citing company executives.
According to Wanap President Guillermo Francos, the online bank may need to raise $22 million once they have the green light to enter the market in May. In approving Wanap's request for a license, Banco Central de la República Argentina required the digital bank to have starting capital of $16 million to guarantee liquidity, Francos said.
With a focus on retail banking, Wanap will offer services such as the opening of savings accounts and MasterCard credit cards as well as the on-the-spot granting of loans through online applications.
"The truth is that traditional banking has many complexities, which come from its structure, and a digital option allows to reduce costs and give cheaper loans, improve rates," Francos said.
Aside from Wanap, veterans from the traditional banking sector are also looking to dive into the digital banking space, including former Citigroup Inc. executive Juan Brouchou, who is looking to launch Brubank, and Stefano Angeli, who served in Multifinanzas Compania Financiera SA and is now the CEO of TSA Banking.
