As I have already mentioned here at TecMundo, in 2015 I had the opportunity to see the birth and participation of this movement that is currently experiencing its moment of consolidation. Startups are here to stay, especially the fintechs: the Brazilian financial sector is increasingly competitive and with an infrastructure capable of doing the job. We don’t owe anything to the international market.
The moment is of maturity: we have at least 20 Brazilian unicorns — and the market’s expectation is that we will reach 1 hundred in the next 5 years
The main one is Nubank, valued at US$ 30 billion by specialized sources. Although this figure is not official, the investment rounds and acquisitions of other business models (there were 6 since 2020, the most recent being the artificial intelligence startup Olivia) reveal the size of this giant, which is… a fintech, see only!
Who does not have their own hunting infrastructure with a fintech
One of the biggest challenges is creating a structure from scratch, and with so many fintechs out there, it’s a waste of time, energy and resources to erect, brick by brick, the foundations of a new solution. Always cited as a success story, Magazine Luiza concluded this year the purchase of Hub Fintech, a Banking as a Service (BaaS) platform, showing that it is increasingly common for companies to acquire white label services — whether BaaS or Fintech as a Service (FaaS).
Another acquisition concluded in recent months was the acquisition of Acesso Bank (also BaaS) by Méliuz for R$324 million. I could cite numerous examples, but this article would be too long. There are several reasons why not only new fintechs are emerging, but also common companies are becoming fintechs, and all of this consolidates the segment.
cooperation is the way
Banks and fintechs have already understood that, now, there must be partnership and cooperation to grow. If before the startups’ goal was to offer solutions that distanced themselves from the plastered scenario of traditional financial institutions, the consolidation of fintechs ended up stimulating a modernization of the services provided by the banking network.
At the same time, the incorporation of more and more products makes fintechs become as robust as banking structures. And acquisitions for the expansion of financial startups are key to attracting and securing customers.
Where there is capital, there is opportunity, and it is in the DNA of startups to reinvent themselves at all times to achieve scalable levels of growth. A new order is taking shape, something we might call a rebundling. Applied to fintechs, this phenomenon is seen in the supply of an even wider range of products.
Thus, fintechs are creating partnerships and mergers among themselves or with banks to fill gaps, improve offers and even produce new solutions that meet regulatory requirements.
Here we are no longer talking about predictions. Fintechs are solid: in less than 10 years, they left the field of innovative ideas from those who dared to dream of a more dynamic financial market to become a routine reality.
Paulo DavidTecMundo columnist and founder and CEO of Grafeno, fintech that provides digital accounts and electronic records infrastructure for businesses and creditors; and is a partner at SPC Brasil in the construction of infrastructure for the financial market. Before Grafeno, he founded Biva, the first peer-to-peer lending platform in Brazil, which was acquired by PagSeguro, a payment method company. He was superintendent of Sofisa Direto, the digital division of Sofisa bank. He worked on the Pinheiro Neto Advogados team and on the KPTL investment management team (formerly Inseed Investimentos). He is an angel investor in fintechs in Brazil and Europe.