Nubank, Inter, C6… why are so many fintechs coming up?


Dear reader, this is easy (and the answer is even obvious): because in Brazil there is a lot of opportunity.

Recently, a Lithuanian friend compared the opportunities of the Brazilian fintech scene with “taking a plane that is flying to the right destination: it doesn’t matter if you are in the first class or in the last row, everyone will reach the same destination”. The whole world today looks with admiration at what we are building, and obviously there are a lot of people who aspire to seek a place in the sun.

and why this happens?
The reasons are varied.

Central Bank does an excellent job

I will tell you a personal experience. My first visit to the Central Bank occurred in 2015, when I presented one of the first fintechs to the institution’s board of directors. I was nervous and I wasn’t sure what to expect. To my surprise (and relief), BC’s reaction was more or less along the lines of: “Fintechs are a global phenomenon, they will happen in Brazil, and our role is to create the rules of the game so that they flourish in the best possible way “.

No sooner said than done. The role of the BC, compared to the main world regulators, has been impeccable and praised globally. This brings security, predictability and competition.

Good entrepreneurs

Fintechs have been a destination for the main names in national entrepreneurship. This involves founders, people who want to work in the field, engineers and investment funds. Even Jorge Paulo Lemann said that if he was in his 30s he would mount a fintech.

Absence of competition

About 80% of the financial market is concentrated in only 5 banks: 2 are public, 1 is orange, 2 are red. There is a lack of color in this palette, so there is a lot of opportunity.

The market can grow

2019 data from the World Bank shows that the credit market in Brazil corresponds to some 60% of the Gross Domestic Product (GDP), which has fallen during the pandemic. In more mature economies, such as the United States, that number is 190% – that’s right, the market is almost double the GDP, so here there is still a lot of room to grow.


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