Democratizing Asset Management in Latin America: Fintual’s Rise to Prominence
The retail investing space in Latin America is undergoing a significant transformation, driven by local tech startups that are capitalizing on the untapped potential for democratizing asset management. One of these startups, Chilean-based Fintual, has just announced a $15 million round led by Kaszek Ventures, the largest fund in Latin America.
A New Era of Investing
Fintual is an automated passive investment platform that allows individuals in Chile and Mexico to invest in mutual funds containing ETFs (Exchange Traded Funds), investment vehicles that are not as well-known or readily accessible in Latin America. The idea behind Fintual was born out of a desire to enable people to invest in the long term, using instruments they didn’t have access to before.
"We were allowing people to invest in the long term, we enabled them to invest in instruments they didn’t have access to before," said Pedro Pineda, co-founder and CEO of Fintual. Pineda, an entrepreneur with a background in astronomy and mathematics, was inspired by his own experiences as an investor.
A Passion for Disruption
Pineda’s passion for disrupting the financial sector was sparked when he sold his previous company, Queremos Descuentos (We Want Discounts), a Groupon copycat in Chile, for over $1 million at the age of 28. After the exit, he admits to feeling lost and unsure about what to do next.
"I decided that I wanted to do only the things that I wanted to do and with the people I wanted to do it with," Pineda said. He spent a couple of years traveling and learning new skills, including coding. It was during this time that he met Omar Larré, Fintual’s current CIO.
A Visionary Approach
Larré had previously worked as a portfolio manager at Banco Itau, Brazil’s largest bank by total assets. He saw the gap in the market: investing was not set up for the average person. The annual fees were too high, the minimum amount required to invest was too high, and there was a penalty when you removed your money.
Fintual’s platform addresses these issues head-on. With no minimum investment or time commitment required, users can take their money out at any time without incurring penalties. Fintual charges an annual fee of 1%, significantly lower than traditional mutual funds in Chile and Mexico, which charge up to 6.45% and 5% annually.
A Growing Presence
Since its launch in 2018, Fintual has grown exponentially, serving over 57,000 clients in Chile and Mexico. The company’s impressive growth has caught the attention of investors, with Kaszek Ventures leading a $15 million round.
"We’re thrilled to partner with Fintual as they continue to democratize access to investment opportunities for individuals in Latin America," said Carlos Garcia, Partner at Kaszek Ventures.
A Bright Future Ahead
Fintual’s success is a testament to the potential of fintech innovation in Latin America. With its user-friendly platform and competitive fees, the company is well-positioned to disrupt the traditional financial sector and bring investing within reach of more people.
As Fintual continues to grow and expand its presence in the region, one thing is clear: the future of investing in Latin America has never looked brighter.
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