The China Mail - In Latin America, Brazilian fintech firms rule

USD -
AED 3.67295
AFN 69.000368
ALL 83.803989
AMD 383.103986
ANG 1.789783
AOA 917.000367
ARS 1297.536634
AUD 1.537304
AWG 1.80075
AZN 1.70397
BAM 1.673054
BBD 2.018392
BDT 121.454234
BGN 1.67146
BHD 0.376789
BIF 2960
BMD 1
BND 1.281694
BOB 6.907525
BRL 5.400904
BSD 0.999658
BTN 87.426861
BWP 13.378101
BYN 3.334902
BYR 19600
BZD 2.00793
CAD 1.38195
CDF 2895.000362
CHF 0.806593
CLF 0.024552
CLP 963.170396
CNY 7.182104
CNH 7.188904
COP 4016
CRC 505.132592
CUC 1
CUP 26.5
CVE 94.903894
CZK 20.904404
DJF 177.720393
DKK 6.37675
DOP 61.72504
DZD 129.567223
EGP 48.265049
ERN 15
ETB 141.150392
EUR 0.85425
FJD 2.255904
FKP 0.737781
GBP 0.73749
GEL 2.690391
GGP 0.737781
GHS 10.65039
GIP 0.737781
GMD 72.503851
GNF 8677.503848
GTQ 7.667237
GYD 209.056342
HKD 7.82445
HNL 26.403838
HRK 6.43704
HTG 130.804106
HUF 337.803831
IDR 16203
ILS 3.37948
IMP 0.737781
INR 87.51385
IQD 1310
IRR 42112.503816
ISK 122.380386
JEP 0.737781
JMD 159.957228
JOD 0.70904
JPY 147.12504
KES 129.503801
KGS 87.378804
KHR 4005.00035
KMF 420.503794
KPW 900.000002
KRW 1388.970383
KWD 0.30545
KYD 0.83302
KZT 541.497006
LAK 21602.503779
LBP 89195.979899
LKR 300.889649
LRD 201.503772
LSL 17.590381
LTL 2.95274
LVL 0.60489
LYD 5.415039
MAD 9.009504
MDL 16.668948
MGA 4440.000347
MKD 52.634731
MMK 2099.537865
MNT 3596.792519
MOP 8.055945
MRU 39.950379
MUR 45.580378
MVR 15.410378
MWK 1735.000345
MXN 18.743504
MYR 4.213039
MZN 63.903729
NAD 17.590377
NGN 1532.720377
NIO 36.760377
NOK 10.19562
NPR 139.882806
NZD 1.687764
OMR 0.384284
PAB 0.999645
PEN 3.560375
PGK 4.140375
PHP 56.553038
PKR 282.050374
PLN 3.639079
PYG 7320.786997
QAR 3.640604
RON 4.325804
RSD 100.223038
RUB 80.100397
RWF 1445
SAR 3.752253
SBD 8.223773
SCR 14.145454
SDG 600.503676
SEK 9.558804
SGD 1.280704
SHP 0.785843
SLE 23.303667
SLL 20969.49797
SOS 571.503662
SRD 37.56037
STD 20697.981008
STN 21.3
SVC 8.746792
SYP 13001.821653
SZL 17.590369
THB 32.440369
TJS 9.321608
TMT 3.51
TND 2.88425
TOP 2.342104
TRY 40.803635
TTD 6.782633
TWD 30.032504
TZS 2612.503628
UAH 41.258597
UGX 3558.597092
UYU 39.991446
UZS 12550.000334
VES 135.47035
VND 26270
VUV 119.143454
WST 2.766276
XAF 561.119404
XAG 0.026323
XAU 0.0003
XCD 2.70255
XCG 1.801625
XDR 0.702337
XOF 561.000332
XPF 102.375037
YER 240.275037
ZAR 17.595245
ZMK 9001.203584
ZMW 23.166512
ZWL 321.999592
  • RBGPF

    2.8400

    75.92

    +3.74%

  • CMSD

    0.0505

    23.34

    +0.22%

  • SCS

    -0.0500

    16.15

    -0.31%

  • BCC

    -0.6300

    85.99

    -0.73%

  • BCE

    0.2400

    25.61

    +0.94%

  • NGG

    -0.1300

    71.43

    -0.18%

  • RELX

    0.2700

    47.96

    +0.56%

  • RIO

    0.2000

    61.24

    +0.33%

  • RYCEF

    -0.2100

    14.71

    -1.43%

  • CMSC

    0.0300

    23.12

    +0.13%

  • GSK

    0.5581

    39.36

    +1.42%

  • JRI

    0.0835

    13.36

    +0.62%

  • VOD

    0.0300

    11.67

    +0.26%

  • AZN

    0.7000

    79.17

    +0.88%

  • BP

    0.1892

    34.33

    +0.55%

  • BTI

    -0.2700

    57.15

    -0.47%

In Latin America, Brazilian fintech firms rule
In Latin America, Brazilian fintech firms rule / Photo: © AFP

In Latin America, Brazilian fintech firms rule

When Brazilian sisters Daniela and Juliana Binatti quit their jobs to launch a new financial technology -- or fintech -- product, colleagues called them a pair of upstart nuts.

Text size:

Alas, they ended up founding a company that US credit card giant Visa acquired this year for a cool $1 billion.

Pismo, as the firm these entrepreneurs created in 2016 is called, is the latest big success story of a Brazilian company in the fintech sector -- the one luring the most venture capital in Brazil and Latin America in general.

"When I was 16, my mother sent me out to leave my CV with banks along (the famous road) Paulista Avenue to find a job," said Daniela Binatti, who is 46 and grew up in a family of modest means in the megacity Sao Paulo.

Many of those same banks have now ended up becoming clients of hers.

With more than 450 employees and five offices around the world -- in Brazil, Britain, the United States, Singapore and India -- Pismo was acquired by Visa in June in one of the biggest deals yet in the Brazilian tech sector.

Brazil thus enlarged its herd of unicorns, or startups with a market value of at least $1 billion, to 21 out of a total of 38 in Latin America as a whole.

"Many people thought we were crazy," said Daniela Binatti, the company's director of technology.

She said she and her sister had to "break through a lot of prejudice to set up a Brazilian tech firm at an international level but we were convinced" it would succeed.

Pismo produces technology designed to make it easier for banks to launch card and payment products.

It will allow Visa to serve its customers no matter where they are or what currency they use, because Pismo's technological tools are based in the cloud and accessible from anywhere, Ricardo Josua, Pismo's executive director, said in a joint ad with Visa.

Other fintech companies created in Latin America's largest economy have shown growth potential, such as Nubank, one of the world's largest online banks, listing on Wall Street and with nearly 84 million clients; or Neon, another such bank, which in 2022 received a $300 million investment from the Spanish banking giant BBVA.

- An appealing ecosystem -

Pismo and its predecessors "show that Brazil is the region's ripest ecosystem for creating financial technology companies," said Diego Herrera, a specialist in the Connectivity, Markets and Finance Division at the Inter-American Development Bank.

Brazil, and in particular its fintech firms, lured 40 percent of the nearly $8 billion in venture capital that Latin America received in 2022, said LAVCA, the Association for Private Capital Investment in Latin America.

This is due mainly to the size of the Brazilian market, in which 84 percent of the adult population has a bank account in a country with 203 million people, said Eduardo Fuentes, head of research at an innovation platform called Distrito.

Brazil's outsized role in luring VC money also stems from the fact that just a few banks control this huge market, causing "many problems that entrepreneurs try to resolve," Fuentes added, citing high costs as an example.

What is more, "Brazil attracts international investors because it has skills and an environment favorable to innovation," said Fuentes, citing things like platforms for collective financing, payment institutions, and PIX, a revolutionary system for making small, instant payments.

Herrera said Brazil "is still the most attractive country in the region and keeps luring investment" even though the flow of money has dropped off from the record levels it hit during the pandemic, as the world economy slowed and interest rates rose.

- Opportunities -

There are 869 financial technology companies in Brazil, giving it eighth place in a global ranking in this category created by financial services company Finnovating.

Most of them focus on credit, payments and financial management, said Mariana Bonora, head of ABFintechs.

"Many opportunities arise in niches that are neglected" by traditional banks, such as products that serve people who are vulnerable or for entrepreneurs, Bonora added.

The online bank Cora -- seen as a possible unicorn -- seized on one of those niches to set up its business.

"We serve small and medium-sized companies, which account for more than 90 percent of all companies in this country, with lower costs and less red tape," said cofounder of Cora.

This Sao Paulo-based bank received $116 million in international funding during the pandemic, and boasts 400 employees and a million customers.

Looking ahead, Brazil hopes to consolidate its fintech ecosystem thanks mainly to the "open finance" system promoted by the country's central bank, which will facilitate exchange of data among institutions, said Herrera.

Other sources of innovation will be the regulation of crypto assets and the implementation of the digital real, the Brazilian currency.

M.Zhou--ThChM