Last week, we hosted an insightful event in Stockholm, in collaboration with VEF, focusing on the promising future of fintech in Brazil. The day was filled with valuable insights from industry experts including Nau Securities Limited, Joaquim Lima, Sergio Furio, Dave Nangle, Joakim Pops, Olle Widén, and André Faria.
Here are our key takeaways:
🔑 Vast expansion opportunities in Brazil: With a population of 216 million and a high willingness to embrace digital technologies, Brazil offers immense growth potential.
🔑 Opportunities for challengers: Concentration, expensive infrastructure, and high price points for established banks create a favorable environment for challenger fintech companies to thrive.
🔑 Lending dominance: Lending constitutes 70% of the retail banking profit pool in Brazil, presenting significant opportunities for innovation and disruption.
🔑 Untapped secured lending market: Established banks have yet to fully tap into the potential of secured lending, and with 48 million debt-free residences, there is ample room for growth in this sector.
🔑 Interest rate dynamics: As highlighted by Sergio Furio, founder and CEO of Creditas, Brazil is ahead in the interest rate cycle, and despite rising inflation and interest rates, the credit quality remains balanced.
🔑 Profit drivers: Stabilizing and eventually decreasing interest rates, cost of equity, and cost of risk are expected to be short to mid-term drivers of profitability in the market.
🔑 Spotlight on Lara: Brazil’s leading point-of-sale lending platform for healthcare, making great strides by providing USD 8 million in loans to over 10 000 patients in just 24 months of operation.
🔑 Spotlight on @finanzero: Brazil’s largest credit marketplace is expanding its customer base within the SEK 1.59 trillion personal loans market, receiving 1 million new Loan Applications per Month.
Stay tuned for more updates on the exciting developments in Brazil’s fintech landscape!
