SAO PAULO: US fintech Synapse is close to reaching 1 million accounts held by Brazilians and is planning expansion to other countries in Latin America and India, CEO Sakaet Pathak said.
Synapse provides US-based checking accounts to clients abroad and has about 13 million users. Clients open the accounts through Synapse partners in their home countries. Earlier this week, Synapse announced such a partnership with Brazilian fintech Nomad and already provides US accounts to clients of Banco Inter SA.
Most Brazilians use these accounts to pay for expenses during trips or to invest in US financial markets. Pathak said the company is in talks for new partnerships to offer the accounts to customers in Asia, mainly in India, and in other Latin American countries such as Mexico and Argentina.
Transferring assets from volatile local currencies to dollar investments is one of the main reasons for clients to open US accounts, Pathak said in a video interview. Synapse owns a US brokerage and other banking products are provided by the company's partners. The accounts are covered by FDIC deposit insurance.
Synapse had its last funding round in 2019, when it raised US$30 million with venture capital firm Andreessen Horowitz, and it expects to reach break even this year, the CEO said. The company does not plan to raise more capital in the short term.