Santander Group’s venture capital fund, Santander InnoVentures, has deepened its presence in Latin America with its fourth investment in the region, this time funneling $5 million in a Series A funding round into a55, a niche alternative SME lender, the VC firm announced in a release last week.

Founded in 2018, a55 offers revenue-backed credit lines to companies with recurring revenue, such as software-as-a-service businesses. The startup uses a technology platform that connects bank accounts, billing and payments systems, and credit intelligence to underwrite businesses. For its SME clients, a55 offers a credit monitoring dashboard, a cash flow management system and an insights component focused on revenue and cost metrics. For lenders backing the loans, the startup has developed a portfolio management and monitoring platform that uses real-time transactional data.

Already, a55 has underwritten 50 companies throughout Brazil and Mexico for approximately $25 million in loans, and the company anticipates doubling that volume in the next year, according to the release. Backed by lenders in the U.S., Mexico, Brazil and France, the fintech previously raised $3 million in seed funding from Brazilian and international investors.

Also read: Galileo looks to power fintech in Mexico

Santander InnoVentures, launched in 2014, has invested in more than 30 fintech startups. Its latest investment in a55 follows the fund’s trend of financially backing fintech lenders — like Kabbage and Mexico-based Klar — as well as startups based in Latin America, including lending platform Creditas and payments company ePesos. InnoVentures has also invested in startups that facilitate the lending process, including U.K.-based MarketFinance, mortgage lending platform Roostify, and AutoFi, a platform that facilitates online car sales and financing.

While VC-backed fintech funding slumped in the first quarter, when the coronavirus pandemic rocked the global economy, Santander InnoVentures said the crisis has highlighted a need to support subscription-based companies to better meet consumer needs amid changing behavioral trends.

“The current crisis will accelerate shifting consumer habits to digital and subscription models. This will tremendously benefit software-as-a-service companies, which will need alternative financial services providers to support their growth and success,” Manuel Silva Martinez, managing partner at Santander InnoVentures, said in a statement. Martinez will join the a55 Board of Directors with an eye to expanding its capabilities and reach, and “explore possible areas for partnering with Banco Santander around the region,” according to the release.

Santander’s interest in the Latin American fintech space coincides with an accelerating trend within the region, according to a CB Insights report released in February. In 2019, fintech funding in Latin America topped $2.1 billion, a 202% year-over-year increase; that number was below $50 million in 2013.

Financial services API and payments platform Galileo announced its expansion into Mexico in May. By stretching its footprint, Galileo, can facilitate fintech clients in the U.S. to reach a new market where nearly 40% of the population is unbanked, according to CB Insights estimates. The Salt Lake City-based Galileo works with Chime, Revolut and Robinhood.

Between consumer adoption and regulatory tailwinds, Latin America is an area ripe for fintech development and adoption, according to CB Insights. Not only is Latin America home to some of the fastest growing countries to adopt internet and mobile, but regulators across the region have been taking steps out of Europe’s open banking strategy to increase financial inclusion, break up incumbent bank monopolies and lower barriers to entry for new tech entrants to receive regulatory approval, the report said.

While political uncertainty and market volatility stand to hamper Latin America’s fintech growth, new investors and funding rounds appear to show fintech’s resilience. “Positive economic forecasts, renewed consumer optimism, as well as reserve capital from funds dedicated to LatAm, like SoftBank’s $5 billion Latin America tech fund, position the sector for growth in 2020,” according to CB Insights.