Latest news with #BancoIndustrial
Coin Geek
29-05-2025
- Business
- Coin Geek
Guatemala's banking giant embeds blockchain for remittances
Getting your Trinity Audio player ready... Banco Industrial, Guatemala's largest bank, has announced the integration of blockchain into its banking services to improve cross-border transactions for customers. Banco Industrial is collaborating with digital asset service provider SukuPay to roll out the blockchain-based cross-border payment solution. SukuPay has been integrated into Banco Industrial's mobile payment app, Zigi, to support international remittances. Following the collaboration, Zigi users can send and receive funds across borders using digital asset payment rails without additional integrations. Banco Industrial and SukuPay executives say customers do not need an International Bank Account Number (IBAN) or a digital asset wallet to receive international payments. However, users will be charged a $0.99 flat fee for international transactions, with SukuPay CEO Yonathan Lapchik confirming instant settlement for Zigi users. Lapchik notes that the 'invisible' integration of digital asset payment rails in the tradfi mobile app is the best route to onboard millions of users to Web3. He adds that eliminating technical barriers while offering the same perks of speed and low-cost settlements will enhance adoption metrics across the board. 'That's the only way we'll scale blockchain to billions of people – by building the rails, not by forcing people to learn how they work,' said Lapchik. A key use case for the new cross-border offering will be for receiving international remittances, with Guatemala receiving up to $21 billion in remittances annually. Banco Industrial's size of operations and customer base is considered a game-changer for SukuPay. The bank has extended its reach toward the rest of Latin America, with operations dotted across Panama, El Salvador, and Honduras, giving it an edge in the regional remittance markets. Latin America drives up Web3 adoption metrics According to a Chainalysis report, Latin America is the second-fastest-growing region for Web3 adoption. The spiking interest in digital assets stems from a growing appetite for stablecoins to preserve wealth from inflation and cross-border payments. Brazil and Argentina are the region's leaders, with Web3 forming a key part of their financial digitization plans. Argentina's capital city, Buenos Aires, is rolling out blockchain-based digital IDs for 3.6 million residents. While Guatemala lags, the partnership between the country's largest bank and SukuPay may jolt adoption metrics in the coming months. WEF endorses a blockchain-based solution for digitizing trade documents Meanwhile, the World Economic Forum (WEF) supports a novel solution to digitize trade documents using blockchain via a single platform. According to a report, the WEF will team up with blockchain service provider Iota Foundation to roll out a non-profit to spearhead digital trade documents. The Twin Foundation will govern the Trade Worldwide Information Network (Twin), a network leaning on blockchain, allowing the transfer of data between supply chain participants. The Tony Blair Institute for Global Change and the Chartered Institute of Export and International Trade also support the Twin Foundation. Twin Foundation will roll out minimum operating standards and industry best practices for exporters to exchange international trade documents. Under Twin, exporters can pivot from traditional paperwork exchanges to digital versions of documents, saving costs and processing times. Parties can submit e-bills of lading and other trade documents, including commercial invoices, to other participants in the supply chain. While offering participants in the supply chain the perks of transparency, Twin allows users to select who they want to share documents with while specifying ownership rights. However, Twin Foundation says it will attempt to onboard governments before extending the offering to enterprises and individuals. For starters, the Twin Foundation will bring Kenya and its customs and revenue agencies on board in what appears to be a pilot for the project. The blockchain-based system will provide border officials with tamper-proof documents, allowing a global pivot from traditional 'paper and stamps' that have characterized international trade, according to Jens Munch Lund-Nielsen, head of global trade and supply chains at the Iota Foundation and an advisor to the WEF. WEF champions emerging technologies to improve global economies The WEF is leading the vanguard for blockchain applications across key sectors of the global economy. The Forum has highlighted the transformative potential of tokenization in global finance and investment while eyeing blockchain's benefits in the pivot to green energy. The WEF has open discussions on the possibilities of blockchain-based digital IDs, making a case for an international framework. However, the organization is playing it safe by backing central bank digital currencies (CBDCs) over stablecoins. Watch | Centi: Bridging digital money and traditional banking title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Yahoo
22-05-2025
- Business
- Yahoo
Guatemala's Largest Bank Adopts Stablecoin Rails for U.S. Remittance Payments
Guatemala's largest bank, Banco Industrial, has adopted blockchain firm SukuPay's stablecoin rails for customers to send remittances from the U.S. SukuPay will allow Guatemalans to receive funds from the U.S. for a flat 99 cent fee using only a phone number within their Banco Industrial mobile app Zigi, according to an emailed announcement on Wednesday. "This integration marks the first time a crypto-native protocol has gone live at this depth inside a top-tier Latin American retail bank," SukuPay said in the announcement. SukuPay's developer Suku unveiled the payment tool in April 2024 as a way of allowing cross-border money transfers without the need to create a crypto wallet. It is built on Ethereum scaling network Polygon and uses the USDC stablecoin. Stablecoins, now a nearly $230 billion asset class, are one of crypto's most practical success stories. Pegged to fiat currencies like the U.S. dollar, they've become popular tools for payments, remittances and savings—especially in developing countries where banking access is limited or local currencies are volatile. SukuPay's integration into Banco Industrial underlines the trend how blockchain-based rails are quietly entering the financial mainstream, not as investment vehicles but as invisible plumbing for real-world money movement. Remittances to Guatemala number around $21 billion annually, which is nearly 20% of the country's GDP. Only 35% of Guatemalan adults had access to formal bank accounts as of 2022, according to the World Bank's Findex Data, making it a prime market for tools that can improve financial inclusion. Sign in to access your portfolio
Los Angeles Times
15-03-2025
- Business
- Los Angeles Times
Transforming Financial Leadership in Guatemala
In the vibrant and resilient landscape of Guatemala's economy, Banco Industrial stands out as a dynamic force shaping the nation's future. From empowering entrepreneurs to spearheading digital innovation, this financial powerhouse has become more than a bank—it is a cornerstone of economic transformation. Under the visionary leadership of CEO Luis Lara, Banco Industrial is not only redefining banking in Guatemala but also reinforcing the country's position as a regional leader in growth and opportunity. 'The story of Guatemala's economic progress over the last 50 years is inseparable from the evolution of Banco Industrial,' Lara asserts. From Industry Supporter to Financial PowerhouseFounded in 1968 within Guatemala's industrial sector, Banco Industrial began as a support network for manufacturers and producers. Today, it has expanded its reach to all economic segments, holding 75% of the group's operations within Guatemala and extending its footprint to El Salvador, Honduras, and Panama. The bank's influence spans from small businesses to large corporations, with a mission to drive Guatemala's overall development. Lara highlights the bank's transformation from its roots: 'We started as a partner to the industrial sector, but now we cater to the needs of entrepreneurs, small businesses, and individuals. Our goal has always been to align with Guatemala's evolving economic opportunities.' This adaptability has enabled the bank to grow alongside the nation. For example, during the COVID-19 pandemic, Banco Industrial provided critical credit lines to businesses and individuals, helping to sustain the economy. 'The easiest thing for any bank would have been to close its wallet during such a crisis. But we focused on ensuring liquidity and creating opportunities for those in need,' Lara explains, emphasizing the bank's role as an economic pillar. The bank's focus on Guatemala's unique strengths is evident in its alignment with the Guatemala no se detiene initiative, which seeks to reposition the country as a regional hub for investment and growth. By actively supporting supply chain reshoring and infrastructure development, Banco Industrial is helping to shape Guatemala's economic future. Empowering Entrepreneurs: A Key to Guatemala's FutureWith nearly 40% of Guatemala's workforce engaged in informal employment, entrepreneurship is key to unlocking the country's potential. Banco Industrial's Fundación BI focuses on providing resources, mentorship, and financial tools to support small businesses and startups. 'Guatemala is unique,' Lara explains. 'Our culture fosters resilience and creativity. Supporting entrepreneurship means empowering communities to create sustainable futures. We want people to see opportunities in staying and thriving here.' This focus extends to initiatives like Shark Tank Guatemala, which provides mentorship and funding to promising local entrepreneurs. The bank also integrates financial education into its programs, particularly targeting recipients of remittances, which constitute approximately 20% of Guatemala's GDP. With annual remittances exceeding $18 billion, ensuring these funds contribute to productive investments is a key priority. Banco Industrial's programs aim to convert remittances into opportunities for business creation and community development. 'These resources often go toward consumption, but we are working to help families turn them into investments in education, entrepreneurship, or property ownership,' Lara explains. Innovation in the Digital AgeBanco Industrial is at the forefront of digital transformation, with nearly 90% of its transactions conducted electronically. The bank has invested tens of millions of dollars annually in technology, ensuring it remains competitive in an increasingly digital economy. The Zigi app, launched to simplify onboarding and banking for underserved populations, has been particularly impactful, enabling users to open accounts entirely online in just days. Lara sees technology not as a disruptor but as an enabler. 'The financial industry must embrace fintech, AI, and new digital tools to grow and adapt. Zigi is just one example of how we are leveraging technology to include more people in the financial system safely and efficiently.' The bank is also exploring the integration of AI across various processes, aiming to optimize customer interactions and back-end operations. Lara acknowledges the opportunities and challenges posed by the fintech revolution: 'Fintechs can develop new ideas quickly, but banks have the advantage of trust and infrastructure. The key is collaboration and innovation.' While Banco Industrial has explored the potential of Central Bank Digital Currencies (CBDCs), Lara remains cautious about cryptocurrencies: 'CBDCs could streamline cross-border transactions, but the unregulated nature of many cryptocurrencies poses risks. Our focus remains on providing secure and reliable digital banking solutions.' Financial Inclusion and Social ImpactIn a country where only 40% of the population has access to banking services, Banco Industrial's commitment to financial inclusion is central to its mission. The bank operates an extensive network of 600 branches and 6,000 agents, providing accessible financial services to both urban and rural populations. 'Our role is to bring people into the formal financial system, enabling them to save, invest, and grow,' Lara emphasizes. 'Programs like Zigi and our outreach to remittance recipients are opening doors for people who previously had no access to banking.' This emphasis on inclusion aligns with the broader goals of reducing migration by creating local opportunities. Migration has been a persistent issue in Guatemala, separating families and depriving the local economy of valuable human capital. Lara believes that fostering entrepreneurship and financial independence is a way to address these challenges head-on: 'By creating opportunities here, we can help families stay together and build their futures in Guatemala.' Banco Industrial also works closely with the public sector to improve financial access, managing payments for taxes and public services through digital platforms. These initiatives not only simplify processes but also build trust in formal financial systems. Global Connections and Investment OpportunitiesGuatemala's macroeconomic stability, underscored by a fixed exchange rate for over 25 years and a resilient private sector responsible for 92% of GDP, makes it an attractive destination for foreign investment. Banco Industrial plays a pivotal role in this ecosystem, actively engaging with international partners through programs like Guatemala no se detiene, a public-private alliance designed to strengthen supply chains and infrastructure. 'This initiative is one of the most powerful tools for economic transformation,' Lara explains. 'It identifies strategic opportunities for investment and enhances Guatemala's position on the global stage.' The bank's collaboration with Mastercard to facilitate cross-border payments further highlights its commitment to integrating Guatemala into the global economy. Programs like Huge, which connects businesses in Guatemala, Honduras, and El Salvador with U.S. partners, also showcase the bank's dedication to fostering international business relationships. Lara sees foreign investment as a key driver of future growth: 'With its vibrant private sector, abundant natural resources, and strategic location, Guatemala is a country ready to grow. We invite the world to join us in realizing its full potential.' A Vision for the FutureAs Banco Industrial looks ahead, its strategies are rooted in innovation, inclusion, and collaboration. Lara envisions a banking ecosystem that not only drives economic growth but also fosters social cohesion and opportunity. 'The future of banking is about more than technology or transactions,' he says. 'It's about building trust, empowering communities, and creating partnerships that drive meaningful change. Banco Industrial will continue supporting and promoting development for Guatemalans, inside and outside our country, promoting financial education and access to the best tools to stay at the forefront of the regional financial system and continue together, always moving forward'. Banco Industrial's journey reflects the broader story of Guatemala's economic evolution—a narrative of resilience, innovation, and hope for a brighter tomorrow.
