Lulo Bank is the first fully digitalized bank in Colombia, with plans of expansion into other Latin American markets. Abu Dhabi conglomerate International Holding Company (IHC) has made a foray into the South American market with a Dh734 million ($200m) investment in a Colombian company.
The move comes as FinTech services gain traction amid the Covid-19 pandemic. The lockdowns and social distancing around the world hastened the move to digital financial and banking services as consumers switched to cashless payments and online shopping.
Colombia is the fourth global market into which IHC has expanded its investment activities this year after the UK, India and Turkey.
Majority-owned by Abu Dhabi’s PAL group of companies, IHC is rapidly expanding its portfolio through local and global acquisitions as well as investments.
Founded in 2020, Lulo Bank is a mobile banking app that provides money transfers, savings accounts, loans, and other financial services.
Since its formal launch in June this year, the bank has signed up more than 120,000 active users and is set to complete more than 200,000 applications before the end of the year.