The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Fintech

Can credit pop Brazil’s fintechs?

As the number of financial technology startups in Brazil balloons, there is a growing sense that the pin to puncture their growth is one critical area of operation: credit. Full service in the digital age is a serious, long-term challenge for new entrants and traditional players.

pin-balloon-780
Anticipation as a ballon rolls over a pin ready to burst
ImageGap/Getty Images



The rapid growth in Brazilian fintechs has created a heated debate about their likely impact on incumbent banks.

After the big bang of startups created by financial digitalization, Brazil’s central bank says the number of fintechs has already exceeded 600.

But such rapid growth is unsustainable, even for a banking market like Brazil’s, which has both scale and large profit margins.

Many analysts expect that this rapid process of digitalization will shake out in the next five to 10 years. In other words, by 2025, it should be clear who the winners of this intense phase of banking competition are or will be.

There may not be that many of them.

Some analysts expect the behavioural aspects of mobile phone-based consumerism will lead to the domination of a few super apps – platforms that try to capture as much as possible of their clients’ online activity.

Mauricio Minas, the member of Bradesco’s board responsible for the bank’s digital operations and who oversees Bradesco’s new digital bank Next, subscribes to this perspective.




You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree