Fintech and insurtech innovation in Brazil set to take off on regulatory tailwinds

DMCA / Correction Notice
- Advertisement -

brazilian instant payment System picks ended 2021, with over 8 billion transactions driven statistics from the Central Bank of the country. This is quite an impressive figure for the offering that was launched only in November 2020 and goes to show how the Pix has become ubiquitous in the country.

- Advertisement -

You can describe the Pix as a “government-made version of Venmo,” as fintech Z1 founder Joao Pedro Thompson told Nerdshala. However, the analogy doesn’t quite capture the fact that pixies appeal to much more than digitally savvy teens paying friends for coffee. Otherwise, it will not be used six out of 10 brazilians,

In a country where many people still do not have banks and queuing to pay bills is a part of daily life, the impact of being able to make payments instantly cannot be underestimated. In addition, Pix now supports more services, such as allowing you withdraw cash from businesses,


It is interesting that Pix is ​​an institutional initiative, part of a broad range of public efforts to transform the financial landscape of Brazil. “Central Bank is doing tremendous work and PIX is one of the most relevant structural changes,” said Brazil’s VC Bruno Yoshimura told Nerdshala when we wrote about Latin America’s fintech boom.

I’ve lived in Brazil, so this naturally piqued my interest. At the time, entrepreneurs were constantly complaining about the bureaucracy, and their biggest hope was that the institutions would get out of the way. But now, VCs and founders are really praising the central bank for its initiatives and the opportunities it creates.

- Advertisement -

“Both OpenBanking and Pix will level the playing field for new challenges, and we expect to see a lot of innovation around them,” Yoshimura said, referring to the central bank’s other projects.

It’s not just the pics, and it’s not just the Central Bank BC # agenda one of two. Brazil’s Superintendence of Private Insurance (SUCEP) is at work open insurance plan, which means InsurTech could be the next area to benefit from the regulatory tailwind.

To understand what’s happening with regulations in Brazil, and how it’s affecting startups, I reached out to experts with direct knowledge of Latin America’s fintech ecosystem.

On behalf of VC, I contacted amy cheatham, a partner of Costanoa Ventures, whose recent investments have included Rio de Janeiro-based Plug; And Alma Mundi Ventures, Javier Santiso For additional thoughts on InsurTech. On the startup side, I spoke to the CEO Rodrigo Tejero From on recharge And Pedro Sonego de Oliveira From troupe,

opportunities abound

“Open Banking Initiatives Adopted by the Central Bank of Brazil Are Absolutely Tailwinds for Fintech Innovation,” Costanoa amy cheatham said. “As consumers gain control over their data, this creates room for new entrants in the banking ecosystem and creates more competition, giving consumers access to better, cheaper, fairer and more secure financial products and services. This includes giving fintech the power to build earlier [underserved] Or the unserved sections of the population,” she explained.

on recharge It is one of the startups taking advantage of the new rules to expand its B2C services. “Our mission at RecargaPay,” said founder Teijeiro, “is to democratize mobile payments and financial services in Brazil, so Open Banking and Pix are the perfect recipe to accelerate our mission.”

Teijeiro in particular applauds Pix and its “incredible” trajectory. “What was accomplished in just one year was a tremendous disruption benefitting millions of Brazilians by making their payments easier, faster and cheaper. For this, the Brazilian Central Bank deserves to be recognized as the ‘Fintech Startup of the Year’. deserves,” he said, describing Pix’s impact on cash-going mobiles as “a huge blessing for RecargaPay.”

- Advertisement -

Stay on top - Get the daily news in your inbox

Recent Articles

Related Stories