Rising costs on fintechs may halt Brazil’s credit deconcentration process

A tougher economic scenario threatens to impose a slowdown in the country’s fintech revolution. Competition does not reduce spread alone, but it is a pretty crucial factor

rising costs credit deconcentration
Photo: Aloisio Mauricio /Fotoarena/Folhapress

Roberto Campos Neto, chairman of Brazil’s Central Bank, recently said that credit concentration in the country had fallen by around ten percentage points over the last ten years due to the monetary authority’s regulatory push that triggered a fintech boom. 

Still, official data gathered for The Brazilian Report by investment platform TC Matrix shows that the country’s five major banks ended last year with control of 72.6 percent of all credit volume and 63.1 percent of industry revenues. While current credit concentration levels are lower than ten years ago, they are higher than in 2015.

The numbers also...

Access all of The Brazilian Report

Less expensive than a coffee!

Enjoy your 30-day limited-time offer for US$ 0.25 a week