Fintech and insurtech innovations in Brazil to start management tailwinds - TechCrunch
Beginners and VCs see opportunities in open banking, finance and insurance
Brazilian immediate payment The Pix system came to an end in 2022 after powering more than 8 billion businesses, according to statistics from the country's Central Bank. This is a very impressive figure for an offer that was only launched in November 2022 and shows how ubiquitous Pix has grown in the country.
You could describe Pix as "a government - built version of Venmo," as João Pedro Thompson, founder of fintech Z1, told TechCrunch. the fact that Pix is appealing to many more than just digital smart teenagers paying back friends for coffee.Other thing, six out of 10 Brazilians would not use it.
In a country where many people are still bankless and there is a queue to pay bills as part of everyday life, the impact of being able to pay anyone immediately cannot be overstated. disrespected. In addition, Pix now supports more services, such as allowing you to withdraw money from businesses.
Interestingly, Pix is an institutional initiative, part of a wider range of public efforts to change Brazil's financial landscape. "The Central Bank has been doing a commendable job and Pix is one of the most significant structural changes," said Brazilian VC. Bruno Yoshimura to TechCrunch when we wrote about the Latin American fintech promotion.
I have been living in Brazil, so this naturally piqued my interest. At the time, entrepreneurs were constantly complaining about bureaucracy, and their highest hope was that institutions would just stay out of the way. But now, VCn and founders are indeed praising the Central Bank for its initiatives and the opportunities it has created.
"Both Open Banking and Pix will open the field for new challenges, and we expect to see a lot of innovation around them," said Yoshimura, referring to another project Central Bank.
It's not just Pix, it's not just the BC # Central Bank agenda either. Brazil's Private Insurance Superintendent (Susep) is working on open insurance plans, which means an insurtech could be the next division to benefit from regulatory conditions.
To understand what goes on with rules in Brazil, and how this affects beginners, I contacted experts with direct knowledge of the Latin American fintech ecosystem.
On the VC side, I contacted Amy Cheethama partner at Costanoa Ventures, whose recent investments include Rio - Janeiro - based Plug; and Alma Mundi Ventures' Javier Santiso for additional insurtech ideas. At the outset, I spoke to Chiefs Rodrigo Teijeiro from RecargaPay and Pedro Sônego de Oliveira from TruePay.
“The open banking initiatives in which the Central Bank of Brazil has fully engaged in fintech innovation,” Costanoa said. Amy Cheetham said. “As consumers gain control of their data, it creates a space for new entrants to the banking ecosystem and creates more competition, giving consumers access to better financial products and services , cheaper, fairer and more secure. This includes empowering construction fintechs for the past [underserved] or sections of the population without service, "she explained.
RecargaPay is one of the startups using the new rules to expand their B2C services. "Our mission at RecargaPay," said the founder of Teijeiro, "is to democratize mobile payments and financial services in Brazil, so open banking and Pix are the perfect recipe to accelerate our mission."
Teijeiro is especially grateful to Pix for his "amazing" manner. "What's achieved in just one year has been a major blow that has benefited millions of Brazilians by making their payments easier, faster and cheaper. For this, the Central Bank of Brazil deserves to be recognized as' fintech start of the year, '' he said, describing Pix's impact on mobile money as "a big blessing for RecargaPay. ”