Paraguayan Digital Bank Ueno Collapses Amid Spending Scandal
Ueno Bank has collapsed after rapidly expanding to serve millions of Paraguayans while officials flagged excessive spending and ostentation at its headquarters.
Digital bank Ueno Bank has collapsed after a period of rapid expansion that saw the fintech startup capture nearly two-thirds of Paraguay's adult population. Since receiving a full banking license in 2023, the bank grew to serve 2.9 million customers, building a high public profile through sponsorships of music festivals, stadiums, the national football squad, and the country's top racing driver.
Beyond its corporate sponsorships, the bank offered significant cashbacks at supermarkets and provided card readers to indigenous artisans at craft fairs co-organized by the first lady of Paraguay. These efforts positioned the bank as a tool for financial inclusion for the country's poorest populations.
However, officials from the investment arm of the Inter-American Development Bank raised suspicions regarding the bank's operations. During visits to the bank's Asuncion headquarters, known as The Matrix, employees observed signs of extreme ostentation. These irregularities included the use of private suites staffed with chefs and butlers, which officials noted contrasted sharply with the bank's stated mission of serving marginalized communities.
