Inviu Expands Its Presence in Latin America

Inviu, a pioneer in technology for comprehensive investment solutions, is moving forward with its expansion strategy across various Latin American countries by expanding its operations in Zonamerica and establishing new partnerships with brokerage firms in Paraguay, Bolivia, Ecuador, Chile, Panama, and Peru.

Inviu's mission is to maximize the potential of independent financial advisors. Through direct agreements with Interactive Brokers and BNY Mellon|Pershing, Inviu's overseas custodians, the company offers the opportunity to open investment accounts in Uruguay, Argentina, and the United States.

This initiative broadens the range of investment options available, tailoring them to each investor’s individual profile and needs. We spoke with Diego Reimundes, a finance enthusiast and Inviu’s Country Manager in Uruguay, about the capital markets and technology.

Latin America has a very low rate of dormant bank accounts—those not used for investment. What accounts for this phenomenon? Is it a lack of financial literacy or fear of market volatility?

For me, these two issues are intrinsically linked. The fear of market volatility stems directly from a lack of financial literacy. In Argentina and Uruguay, financial education is not part of the school curriculum, and it is likely that these topics are not addressed in college either, at least not in most traditional degree programs. As a result, people lack the opportunity to develop an understanding of the market during their education. Many people express fear of investing, arguing that the market is too volatile. While there are high-risk investment instruments designed for risk-tolerant investors, there are also more conservative options with minimal risk. The root cause of this low participation in investment accounts in the region lies primarily in a lack of knowledge.

When examining data from regulators in the region and calculating the ratio of investment accounts to bank accounts, we find that in Argentina this ratio stands at 5%. In other words, for every 100 bank accounts, only five are linked to investments. In Chile and Peru, this percentage reaches 6%, while in Colombia it rises to 8%. Despite these increases, they are far from the 55% seen in the United States. Beyond Inviu’s business objectives and our model based on the independent financial advisor, there is a broader mission: to bring this 5%, 6%, and 8% closer to the 55% that characterizes a developed country like the United States.

"Inviu's goal is to drive the growth of the capital markets, reaching an ever-wider audience and helping people achieve their financial goals."

In this context, what role do financial advisors play in the region?

Let me take a step back to provide a complete picture of the situation. As part of our ongoing internal research cycle to understand the markets, we conducted surveys of investors, specifically those representing the 5%, 6%, and 8% of discretionary accounts we observe in the region. These surveys focused on the role of the financial advisor, and we uncovered a key finding that supports the fundamental premise of our business: 71% of investors value human advice. They seek a connection with someone they can see, meet with, and who can explain in detail what they are buying or selling, the risks involved, the expected return, and, ultimately, how those aspects align with their investment goals and time horizons. In short, we work with the end client in mind.

That said, the regulation of financial advisors varies from country to country. In Argentina, for example, there are regulated roles such as the producer agent and the comprehensive investment advisor, who are dedicated to advising and managing portfolios for clients from other countries. In Peru, although this role has not yet been regulated, there are already individuals working as independent financial advisors. When I say “people,” I am referring to both individuals and legal entities. This scenario not only provides a solid foundation for market development but also presents a great opportunity for more individuals and entities to join the financial advisory profession on an independent basis.

How do you provide investment solutions for these financial advisors? 

We define ourselves as an Investech company, which means that technology is our primary ally. However, we like to emphasize that we are much more than just a platform, website, or mobile app for managing portfolios and interacting with advisors or clients. We don’t limit our focus solely to technology; we aspire to go beyond that, especially in the context of independent financial advisors. Our goal is to alleviate your operational concerns so that you can focus exclusively on your client relationships and help them achieve their investment goals.

To achieve this, we don’t just offer technology; we also have a team of research and strategy experts who help financial advisors develop investment strategies for their clients based on their risk profiles. In addition, they provide reports featuring straightforward market analysis and concrete actionable ideas. Independent financial advisors manage their own business units. Our goal is to maximize the profits they can generate. We believe that by providing operational support through technology, human assistance, and access to quality investment products, we enable them to focus on what they do best: managing client relationships and building portfolios to optimize their business.

2023 was a year of expansion for Inviu. In September, the company announced partnerships with brokerage firms in Paraguay, Bolivia, Chile, Ecuador, Panama, Peru, and Colombia, adding to its existing operations in Argentina and Uruguay. What impact does the expansion of investment options have in the region? 

When I first brought up the topic of Inviu, I omitted a key detail: our origins as a project of the Galicia financial group, conceived with the intention of expanding beyond Argentina’s borders.

This group, distinguished by its top ranking in the Argentine banking sector, as well as its leadership in the insurance and investment fund sectors, and its ownership of the Naranja X digital wallet, was already running several prominent businesses in Argentina. The vision of the Galicia Group, led by Inviu, was to expand throughout the region while always maintaining our identity. In 2019, we took our first steps from Argentina, and by mid-2021, we had obtained authorization in Uruguay as a securities broker. Thus, Inviu holds a Comprehensive License in Argentina and operates as a securities broker in Uruguay, representing two distinct entities with independent clients, regulators, and operations.

Having clarified this, in response to your question, 2023 marked the beginning of the realization of our initial goal: to attract clients, including independent financial advisors and investor clients outside of Argentina. We began actively seeking out opportunities in Paraguay and other regulated institutions in Latin America. How does this impact our model? From Uruguay, we focus on serving this offshore business, thanks to our location in a free trade zone. In this environment, we cannot attract Uruguayan clients, making our business purely offshore. Our work consists of facilitating agreements with U.S. brokers, such as Pershing and Interactive Brokers, so that Latin American independent financial advisors—whether from Paraguay, Peru, Ecuador, Panama, Chile, or elsewhere—can work with their clients.

They set up operations in Uruguay two years ago. What are the advantages of setting up operations in a country like Uruguay?

The advantage of setting up in Uruguay lies in its free trade zone regime, which is specifically designed for companies like Inviu that seek to establish an exclusively offshore business. The tax benefits provide an incentive for you to grow your business and serve your target clients. You can complement this regime with business parks such as Zonamerica.

What advantages does Zonamerica offer a technology-based financial company? 

Let’s start with the basics: Zonamerica is all about nature. It’s a park, so from the moment you arrive, you’ll be immersed in a beautiful setting. In terms of business, here you’ll find a significant concentration of financial market players, and you’ll also connect with the Zonamerica community. The assigned account executive is business-friendly and facilitates interaction with other participants on campus, creating an environment conducive to offering technology services.

Zonamerica places a strong emphasis on technology. They offer software development and data storage services, positioning themselves as a provider of comprehensive technology solutions. When you work with Zonamerica, you’re not just renting office space—you’re partnering with a business-oriented company that can meet any technical needs you may have. This provides added peace of mind. Whether you need technology from the start or, as in our case, have tripled the amount of square footage we rent since the beginning, we have always relied on Zonamerica’s flexibility to streamline processes, negotiate rates, and ensure customer satisfaction at the end of the day.