Even passing through one of its biggest political and economic crises, Brazil poses a unique opportunity for potential growth and high incomes, compared to evolved and developed countries, which do not see the same opportunity.
In Brazil alone there are roughly 150+ Fintechs established performing also on different levels and stages, 1 out of every 5 Fintechs already have over 20 employees.
In 2015 alone, approximately BRL 200 million entered into that portfolio, with a forecast of BRL 450 million in 2016. The banking and financing sector see challenges due to market slowness and their inability to deliver a good customer experience. That is why Itaú and Bradesco are researching for new digital business, investing in startups.
On the other hand, Banco do Brasil and Caixa Econômica Federal, both public banks, were facing regulatory challenges but recently an act was released allowing public banks to join venture with Fintechs.
Over 130 million smartphones are used as the main device for internet access for 50% of Brazil’s population, providing an environment where an increasing number of applications have been launched recently.
Fintechs took advantage of this scenario to offer consumers and businesses a way to improve efficiency and sustainably reduce their costs.