Brazil Braces Itself for a Fintech Revolution


Traditional banking services have eluded many Brazilians, leaving more than 34 million of them either underbanked or unbanked. Fintech companies have come to remedy that, as many have stepped up to serve consumers in Brazil in ways that the current banking system has not, including providing them with their first bank account.  

There are three key reasons why Brazil is ripe for a fintech revolution. For one, Brazil’s current banking system is small, made up of only a few banks.  What’s more, these banks are both “rigid and oligopolistic” in their approach to banking. For many years, this has meant that both banking fees and borrowing fees have been astronomical, leaving a considerable number of Brazilians unbanked, while banks profited. These rigid regulations also placed a significant burden on those wanting to open new banks in the country to increase competition.  

Then there’s Brazil’s affinity for installment payments, which dates back to the 1950s, with the proliferation of ‘crediários.’ This is where customers…

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