Brazil’s big banks rattled by fintech competition

fintech bank concentration
Fintech competition has disrupted the banking sector

Four banks dominate Brazil: Banco do Brasil, Bradesco, Caixa Econômica Federal and Itaú hold 73 percent of all active accounts and 80 percent of the country’s credit. For every 10 BRL deposited in the country, 7.67 BRL will end up in accounts held at one of these four. Even Brazil’s deepest recession has benefitted them, as the financial crisis toppled many emerging competitors.

This gives Brazil’s biggest banks a higher concentration of power than in the U.S., where, according to World Bank data, the top four hold just 42 percent of the market. They hold more power than those closer...

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