Disruptive technology is changing the banking system. In developing countries, this phenomena is highly profitable. Find out what's happening in Brazil.

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03 FOREWORD
05 BRAZILLIAN FINTECHS
09 LIST OF 20 HOTTEST FINTECHS
13 INTERNATIONAL FINTECHS
15 ONLINE OAYMENTS ECOSYSTEM
17 CONSIDERATIONS WHEN ESTABLISHING
19 TRACTION
20 ESTABLISH AN ENTITY OR FIND A REP PARTNER
21 TOP TIER PLAYERS THINKING

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THE
FINANCIAL
WORLD
IS
CHANGING
RAPIDLY

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As Forbes mentioned in a recent article, the digital influence is changing all aspects of
how people and businesses deal with money. Start-ups offering tech-enabled payments,
currency exchange, crowd funding, online lending and wealth management services are
sprouting all over the globe, posing a fierce competition to traditional retail banking and
financial services firms.
“The financial crisis meant that a few financial services giants stopped
investing in R&D.This, coupled with new regulatory requirements
imposed on the banks and the need to drive costs out of financial
services, meant that opportunity was ripe ...”
Explains Eric Van der Kleij, British
entrepreneur ahead of Level39, in an
interview with Fortune.
The drive of these young companies is to
innovate and, therefore, represent a break
with traditional financial institutions,
known for their outdated technology
made for an era that has passed. FinTechs
disseminate a range of financial services
that, until recently, was exclusive to banks,
with one crucial difference: companies
can now see and measure the service they
are hiring.
Scanning has brought more transparency
to the sector, as well as new and reliable
metrics to measure performance and
assist the making of strategic business
decisions. It’s technology in favour of
financial results. This applies in particular
to countries under development, where
banking and financial systems are heavily
bureaucratic.
Brazil, for example, has only a fraction of
the thousands of FinTechs existing in the
USA. Nevertheless, FinTechs are finding
fertile ground to grow and Brazilian
banks have shown concern about the
phenomenon.
Itaú, the largest and most profitable bank
in the country, bought an e-commerce
gateway in 2014, MaxiPago, for an
undisclosed amount. They have also
partnered up with other investors and
business accelerators to bring under their
wings a co-working space, home for 42
start-ups, of which, 6 are FinTechs.
Bradesco has been sending staff to New
York, Silicon Valley and London for the
past three years with the single purpose
to research digital news. They are also
hosts of a business incubator program
called InovaBRA, created with the mission
to accelerate start-ups whose business
has an affinity with the bank.
4

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The underlying reason for all this rush
of banks is the recognition that large
institutions are often unable to innovate
at the speed required. While banks
struggle to think of new ways to relate to
their digital audience, start-ups are born
with a product tailored to the user. The
consensus among financial institutions is
that the partnership, in the end, may be
the best way.
Brazilian Fintechs
Brazil has a lively ecosystem for Fintech
startups. The one everyone is setting
their eyes on is Nubank. The company
issues credit cards free of annuity in
contraposition to regular banks, whose
annuities are fiercely criticised and often
considered abusive.
Nubank is backed by the giant Sequoia
Capital and have already 300,000
people lining up to receive their cards
despite never spending a single penny
on advertisement. Another significant
difference of the company with traditional
card issuers is the fact that contact with
the company is done almost entirely
through digital format, with 65% of
customers using their built-in chat
application, and to minor degree,
through social medias
and email.
Another equally rising star is Magnetis,
an intelligent platform that helps people
design a tailored investment plan for
themselves.
The platform is free of charge (until you
decide to invest and the company takes
a modest 0.4% of the total invested
per year) and accessible to all people,
regardless of the size of their assets. They
were pioneers of this technology in Brazil,
starting in 2010 and now managing
accounts of over 115 000 customers,
worth a total of 2,8 billion dollars.
In the same segment, there is GuiaBolso
(literally translated‘Pocket Guide’), a
Personal Financial Management platform
that automates budgeting and guides
financial decision-making.
They are the most downloaded app in
Apple Store Brazil with 1,6 million active
users registered.

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