Today, we cover one of the fastest-growing sectors in Brazil: fintechs. São Paulo’s plan to attract foreign money. And why Black Friday 2020 won’t save retailers.
Brazilian fintechs raise over USD 1 billion in 2020
Amid a sluggish economy with at best uncertain prospects, one sector of the Brazilian economy has largely skirted the crisis: fintechs. According to a new report by startup monitoring platform Distrito, Brazilian fintechs raised USD 36 million from investors in October alone. Since January, a total of 76 investment rounds attracted USD 1.16 billion.
Market outlook. The market is becoming more crowded, with a total of 828 fintechs representing a 34-percent increase on a year-on-year basis. Three segments dominate the sector: firms focused on payment methods (16.3 percent), back-office (15.5 percent), and credit (15 percent).
Why it matters. Fintechs have the potential to disrupt a massively concentrated banking market, and helped the government produce what is arguably the broadest financial inclusion process in the world.
- The number of individual taxpayers with a bank account rose from 164.66 million in December 2019 to 175.45 million now.
Regulation. This week, the Central Bank approved the implementation of the so-called “regulatory sandbox” for fintechs. It consists of a...