BBVA invests 300 million in Brazilian digital bank Neon

Carlos Benitez-Donoso González, CC BY-SA 4.0 , via Wikimedia Commons

The Spanish bank BBVA has invested 300 million dollars in the Brazilian digital bank Neon, which was founded in 2016.
BBVA has decided to invest 300 million dollars (around 263 million euros) in Neon, a digital bank founded in 2016 that helps individuals, the self-employed and small businesses to access financial services in Brazil, with 15 million accounts that have been registered so far.
BBVA has highlighted that this investment takes place in a context of unprecedented technological growth, with strong development of digital and innovative models, especially in the financial sector.
Through this new investment, BBVA has acquired a stake of 21.7 per cent in Neon. They had already had a stake in the company since 2018, through the private equity fund Propel, and after this transaction, their new stake will total 29.7 per cent of Neon.
In addition to a clear commitment to innovation, the investment gives BBVA exposure to the retail banking business in Brazil, one of the markets with the greatest potential in the world.
“The strategic commitment to innovation is one of BBVA’s hallmarks, and the digital route opens up a way for us to grow in very attractive markets,” said the chairman and CEO of BBVA, Carlos Torres Vila.
“Neon has proven to offer something valuable through its connection with the financial needs of Brazilians, and it has the capacity to continue growing rapidly in a market with great potential”, he added.
The investment in Neon is the latest in a series of investments that BBVA has already made in other digital financial platforms such as Atom Bank in the UK and Solarisbank in Germany.
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Tamsin Brown

Originally from London, Tamsin is based in Malaga and is a local reporter for the Euro Weekly News covering Spanish and international news. Got a news story you want to share? Then get in touch at [email protected]