For Salomon Zarruk and Sebastian Ortiz, opening a business bank account was not as straightforward as they had hoped. After experiencing firsthand the difficulties of navigating the banking system in Latin America, they decided to take matters into their own hands.
Zarruk and Ortiz worked together at Tpaga in Colombia before relocating to Mexico to launch the mobile wallet company there. However, Zarruk’s experience with opening a bank account for the company was less than impressive. In fact, he told TechCrunch that the process "was a mess."
The Birth of Mono
Determined to make it easier for other Latin American businesses to open bank accounts, Zarruk and Ortiz co-founded Mono in January 2023 while participating in Y Combinator’s accelerator program. They were joined by Juan Camilo Poveda and José Tomás Lobo, who brought their expertise in banking and tech operations.
Poveda has a background in developing lending and banking products for Nubank, while Lobo has experience with tech operations and execution. The company’s name, Mono, is inspired by the concept of a forest recovering after a fire. According to Lobo, even though the land may appear barren, it remains fertile, and when monkeys start eating seeds from trees, they drop new seeds on the ground, leading to new growth.
The Seeds of Change
Lobo explained that this analogy represents what small businesses do for the economy: entrepreneurs bring about change and innovation. Zarruk referred to Mono as "the first bankingless bank" for startups and small businesses in Latin America, providing fully digital bank accounts that can be opened in around 15 minutes, compared to an average of two weeks at traditional banks.
A New Approach
Mono operates with a local banking partner in Colombia and is building its own tech stack. The company offers bank accounts with physical and virtual debit cards, the ability to make and receive wire transfers, and payment capabilities. Zarruk emphasized that Mono’s approach is distinct from competitors who focus on credit cards, payment terminals, or cash management products.
Speed and Efficiency
The primary motivation behind Mono’s growth strategy is speed, as Zarruk stated: "We want to help small businesses compete with incumbents." The company has achieved significant milestones, including:
- 24-year-old founder raises $3M for his next venture: Dominic-Madori Davis
- A 24-year-old who exited his first company to Coinbase raises $3M for his next venture: Dominic-Madori Davis
Growth and Funding
In February 2024, Mono secured a significant investment from Tiger Global Management, which will be used to further develop the company’s platform and expand its services. This funding round demonstrates the growing interest in fintech solutions that cater to the needs of Latin American businesses.
Conclusion
Opening a business bank account should be a straightforward process, but for many entrepreneurs, it can be a challenging and time-consuming experience. Mono is addressing this issue by providing a simple, efficient, and cost-effective solution for startups and small businesses in Latin America. As the company continues to grow and innovate, it is likely to become a leading player in the fintech industry.
Key Takeaways:
- Opening a business bank account can be challenging, especially for entrepreneurs in Latin America.
- Mono is addressing this issue by providing a fully digital banking solution that can be opened in around 15 minutes.
- The company’s approach is distinct from competitors who focus on credit cards, payment terminals, or cash management products.
- Mono has secured significant funding from Tiger Global Management to further develop its platform and expand its services.
By understanding the challenges faced by entrepreneurs in Latin America and providing a solution that addresses these issues, Mono is poised for success in the fintech industry.
