Banco Pan’s turnaround has taken another step forward with its acquisition of ecommerce platform Mosaico. Chief executive Carlos Eduardo Guimarães talks to Euromoney about the importance of growth with profitability.

Banco Pan’s unlikely transformation into a force in digital retail banking in Brazil began in 2010 with a $1.4 billion accounting fraud. The owner, Silvio Santos, a well-known media figure in Brazil, was forced to offload the bank (then called Banco Panamericano and specializing in car financing) to a partnership of state-owned Caixa Economica and investment bank BTG Pactual.

State-owned Caixa Economica cashes out of its Pan investment with R$2 billion profit.

Investors expect a radical transformation in Brazilian financial services in the next five years: this enthusiasm is depressing incumbent stocks while driving strong valuations for start-ups.