Fernando Sandoval

You were recently recognized by Forbes as one of the best CFOs in Mexico. Congratulations! What does this distinction mean to you personally and for Kapital Bank?

To be honest, I didn’t expect this recognition, it’s not the type of thing I seek. I’m more of a down-to-earth guy, focused on doing what I love and executing it well. You often hear people ask, "How can I know what I love?"—and the truth is, you have to follow your instincts. I’ve learned a lot about that from my partner, who has a strong gut feeling for things. I used to be more analytical, coming from a finance background, but over time, I started developing that instinct as well. That’s when you begin to find your path and move toward where you want to be.

Of course, it’s nice to be recognized, and it feels good that the market acknowledges us in a way. This isn’t just about me—it's about the entire team. This company isn’t just built by three co-founders; it’s made up of 500 people who believe in the project. The recognition we’re receiving is for the whole team that’s making this happen. We’re not solo founders driven by ego; it’s the hard work of so many people that’s bringing this to life.

How do you balance the financial responsibilities of your position with the innovation required in a fintech company?

Times have changed, and there is innovation everywhere. It is not just about releasing a product; there’s also innovation happening internally within the company. So, when it comes to balancing responsibilities, it’s not about following traditional methods. It’s about having a DNA of innovation that drives all departments forward.

Being both a co-founder and CFO involves wearing multiple hats. How do you balance these roles, and in what ways does this balancing act influence your perspective on business and leadership?

That’s a great question, because when you start a company, you may have a title like you said, but you also end up with ten more responsibilities to fulfill. So, I think the most important thing is how you prioritize your time—and that requires a lot of discipline. Everything comes down to discipline. You need to have a clear, long-term vision, combined with short-term goals. That’s how I see it.

Can you share a moment when you faced a significant challenge and how your leadership style helped navigate through it?

I think you always need to act fast, but the challenge is how to make fast decisions without having all the information you might need. So, going back to the gut feeling, that’s when it comes in, and you always have to hear it. You rarely have the full picture, but the sooner you make the right call, the faster things move forward. It’s also crucial to maintain a clear mind and handle your emotions to have a clear view of where you’re going.

You also need to recognize that you cannot be an expert in all matters. That’s why you need a great team who can complement your skills and bring diverse perspectives. We like to have team members with different skill sets and mindsets, not just people who agree with everything—we want people who actually challenge us.

Kapital was featured on the 2024 CNBC Disruptors 50 list. How is your scaleup revolutionizing the financial landscape for small businesses, startups, and entrepreneurs in Latin America?

That was also an incredible announcement. We were just working in the office when my co-founders and I received an email saying we’d been given this recognition. At first, we were skeptical, as you know some media companies will give you an award but then ask for payment. However, as we dug deeper into the details, we discovered who else was on the list and saw we were next to OpenAI. It was a great moment because it showed that innovation isn’t just coming from the U.S. or developed countries and that developing countries are not destined to remain copycats, but can show great innovation too. In fact, when we talk to investors, they often ask, "Who are you in the U.S. or Europe?" But we aren’t just copying anyone. We’re a unique mix—a blend of companies like Brex, Ramp, and Bill.com. In the U.S., you have separate companies offering different services, but what we’re building is an ecosystem. A while ago, it was hard to explain the value of what we were doing, but once people started seeing the power of our business model, they loved it because it was something fresh and unique that hadn’t been fully realized elsewhere.

So our main idea, and how we see it ourselves, isn’t about taking; it’s about giving back, and still being a business. We’re creating an economic engine to help SMBs scale by giving them access to efficient and affordable technology, as well as financial technology and financial services. Because, when you’re an entrepreneur and start your business, maybe it’s just you at first, but as you scale, it starts to get more challenging. Sometimes you notice that you are losing control and visibility over the business.

I remember saying, "This isn’t about competing in the commodity space. Financial products—loans, wallets, cards—are all commodities, and you only end up competing on price." I realized we needed to shift our thesis to focus on competing in value. That’s why we designed our treasury and cash flow tool. Across companies, you see different software solutions: accounting ERPs, CRMs, HR payroll systems, and more. But banks have long controlled cash flow management, and they haven’t invested much in improving it. A current account typically just shows you a balance without giving you a full understanding of what’s happening.

So, we redesigned it from the ground up. With our SaaS and banking products, we provide daily data to help businesses make better decisions. We give you real-time insights into sales, expenses, and profits. You can track your company's entire financial history, accounts receivable, and accounts payable. And if your cash flow is tight because tier-one clients like Coca-Cola or Walmart pay on long terms, we offer working capital loans so you can purchase inventory and pay in installments. It’s a "buy now, pay later" approach for SMBs.

We also give instant payments 24/7, while traditional banks operate only Monday to Friday. SMBs, however, run over the weekends, and they need financial visibility during that time. These small details are how we’re constantly improving our ecosystem. From treasury ERPs and multiple current accounts for organizing instant payments to corporate cards and flexible capital management, we’re building an all-encompassing system. And now, as a bank, we even offer treasury management—something SMBs typically don’t get. We’re enhancing the ecosystem with each step, and we’re committed to delivering more and more features as we grow.

Kapital has also recently achieved historical records in credit allocation and deposit mobilization. How do you stay ahead of the curve and ensure your company remains competitive in such a dynamic environment?

That's a great question. I’m recalling a moment about a year ago when an investor asked us, "What keeps you awake at night?" We had to pause and really think about it because, of course, there are always a lot of things going on. It’s not all smooth sailing—we’re still consolidating the company, and even though we’ve been operating for 2.5 years, almost 3.

And so we answered that the fear of stopping innovation kept us awake. Once you stop innovating, you become a legacy player—it's as simple as that. So for us, again, innovation is part of our DNA, as I mentioned at the beginning. We can't afford to stop, and everything we do revolves around coming up with new ideas and finding ways to execute them. That's what drives us, and that’s why it’s a big thing.

Can you share some examples of AI applications your company has implemented to enhance financial services?

AI is a trendy term right now, but beyond the buzz, the real question is: what are the practical use cases? How can AI actually make an impact in daily life? When we started the company back in 2021, one of the first teams we built was a data analytics team. Initially, it was just a hunch, but we had a strong feeling that the main focus of banks shouldn’t just be lending. 

Actually, the main business of a bank is to become a data analytics company, because they have so much information to give value to their own customers instead of themselves.

Once we realized the amount of information we had—stronger than traditional players—we knew we were sitting on something incredibly powerful. It wasn’t just about using data for underwriting; it was about giving that value back to our customers, as they often don’t realize the value of the information they have. So, we started by providing SMBs with clarity—offering them daily insights into where their business stands financially. With this data, we could fully digitize and automate their financial and treasury departments.

We launched an AI model with simple, yet effective, use cases. For example, we built a basic FP&A model, which helps businesses project how much they need to sell, how to protect their margins, and how to scale effectively. SMBs usually don’t have the size or resources to afford an FP&A department, so we simplified it for them. With all the historical data we collect, we can also analyze vendors, group recurring ones, and then pay for you. If we detect any unusual bills, like if your telecom bill is unexpectedly high, we can stop the payment and let you know, giving you time to talk with the telecom company.

We also have a chatbot in the banking platform, so users can ask questions like, "What was my biggest expense?" or "Who is my strongest customer?". It's about narrowing down the information.

The main idea is: how can we empower SMBs to grow? Our focus is on providing value by giving them access to information, to those inside, to make informed decisions right away instead of managing the business in the dark or relying on gut instinct as the business owner. With this real-time data, business owners can collect, produce, pay, and manage more operations.

The use of AI in financial services raises ethical questions, particularly around data privacy and bias. What steps is your company taking to ensure AI is used responsibly?

First of all, we’re fully compliant with regulations, and we take that very seriously. Secondly, we understand that the information we handle is for customer use. It’s about creating value for them, we don’t profit from selling this data. We profit from using that data to truly benefit the customer—the beneficiary. We simplify the data for them to use, and that’s how our business model works, that’s how we charge for our SaaS.

How do you balance the innovation of AI-driven decisions with the caution required as a business leader and a CFO?

That's another great question. When we started the business, we knew that fintech operates in a heavily regulated space, whether you like it or not. Some companies try to stay in a gray area for as long as they can, but the sooner you comply with regulations and understand the rules of the game, the faster you can keep innovating. That’s why we became a bank in just two years.

Other fintechs in the region have been operating with different types of vehicles, but for us, becoming a bank was the right move. It’s been a game-changer. Now that we’re a bank, we see the advantages of it being regulated, as the bank license grants more innovation. As a fintech startup, you can launch your business, but you have to work with legacy players who are not always keen on quickly innovating or adapting.

Now that we’re a bank, we can control the entire process of innovation from end to end. Yes, it comes with a lot of compliance responsibilities, but it also gives us direct access to systems like the Mexican Central Bank. We can release products right away, which is key as, for startups, everything is time to market, and we have the prior knowledge to keep releasing new features.

What was the last book you read that had a profound impact on you?

I’m currently reading Letters from a Stoic by Seneca. I find that stoicism offers a lot of clarity and helps cultivate discipline of the mind, which is something I really appreciate. Another book I absolutely love, from an entrepreneurship perspective, is Amp It Up by Frank Slootman, the CEO of Snowflake—one of the biggest and most successful SaaS companies in the U.S. and globally. The book gives many valuable insights on how to scale a company without losing its innovation engine.

One of the quotes I love from the book is: “When there's doubt, there's no doubt.” A reminder to trust your gut and keep moving forward.

Define your experience at IE in just one word.

Transformational.

In what ways do you think the IMBA program has changed your life professionally and personally?

It reshaped my life in many ways. I made the decision to evolve, knowing where I wanted to go and what I needed to get there. I could have become an entrepreneur without the MBA, but I recognized that I needed time to settle, clear my head, and access all the information from courses, professors, friends… from a network. I wanted an international experience to open my mind again, refocus myself, and find my path.

At the time, I felt a bit lost; I wasn’t sure of my short-term path, even though I knew my end goal. That phase was challenging, but it made me become who I am today, working on the project I have now. The struggle was necessary for my growth, and again, it’s not about getting the answers from the MBA itself; it’s how you use it as a tool to reach your goals. I took advantage of all the materials and used them to reshape myself.

Something at IE that really helped open my mind was participating in the IMBA Startup Lab. I’ve always had the pull to become an entrepreneur, and that course gave me the clarity and understanding to make it happen.

What can alumni do to create a positive impact, not only within the IE community but also for the rest of the world?

I think everything starts with values. Society and business are both changing right now and understanding the problem you want to solve is essential. But it’s also important to realize that you’re not fixing that problem for yourself—you’re solving it for those facing it. That’s why we focused on helping SMBs in Latin America, because by doing so, we’re supporting the economy, because SMBs contribute 50–60% of the GDP and employ 60–80% of the workforce in each country, yet they only receive 15% of the financing.

Imagine if we could provide efficient technology, affordable working capital, and tools to help them make the right, or better decisions. It’s been great to see some of our customers grow from five employees to thirty, or from fifty to over two hundred. That’s the kind of impact we’re striving for—to help Latin America grow, not just by providing capital, but by helping SMBs to use it in an optimized way. This is deeply tied to our values because back in the seventies, the business mindset was that “there is only one winner”, but now it’s about creating win-win solutions for both sides.

How is the Fernando of today different from the Fernando who graduated from IEU?

I think very differently now because you’re always evolving. Change is constant, even though we often don’t like it. Humans are always changing: you’re born, you grow… everything is about change and growth. I feel I’ve matured a lot, in all senses; I’ve been gaining new perspectives on life and beginning to value different things. Starting a business from nothing shows you who’s there to help, who genuinely reaches out to lend a hand, and also who you might have expected support from but didn’t receive it. Now that things have shifted, and we are no longer a startup, we are a scale-up, a neobank rather than just a fintech, it actually goes the opposite way. With that growth comes a new clarity and deeper understanding of life.

Yet there’s still so much ahead, so much to do. The goal is an IPO because this isn’t just about fundraising, it’s about creating value that lasts. My partners and I don’t celebrate every fundraising milestone—we’re saving that celebration for the IPO. Raising capital means responsibility to our VCs, and we aim to give back many times over.

If you had a billboard that you could display to the world, what would you write on it?    

“There's always a way. Enjoy it. Enjoy it. Enjoy it.”

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