Fintech and insurtech innovation in Brazil set to take off on regulatory tailwinds – Swordian

Brazil immediate payment According to the Pix system, it was terminated in 2021 and powered over 8 billion transactions. statistics From the country’s central bank. This is a very impressive number for a product that just launched in November 2020 and shows how popular Pix has become in the country.

Pix can be described as “a government-created version of Venmo.” João Pedro Thompson, founder of fintech Z1 I said TechCrunch. However, this analogy does not fully capture the fact that Pix not only buys coffee for friends, but also attracts many digitally savvy teenagers. Otherwise, it will not be used by 6 out of 10 Brazilians.

In countries where many people are not yet in the bank and queuing to pay bills is part of their daily lives, the impact of being able to pay anyone immediately is modest. I can not tell. Additionally, Pix now supports more services, including: Withdraw money from a business.

Interestingly, Pix is ​​an institutional initiative and part of a larger public effort to transform Brazil’s financial situation. “The central bank is doing a great job and Pix is ​​one of the most relevant structural changes,” said the Brazilian VC. Bruno Yoshimura I told TechCrunch when we wrote about the fintech boom in Latin America.

It was of course intriguing for me because I lived in Brazil. At that time, entrepreneurs constantly complained about bureaucracy and their greatest hope was to keep the institution at bay. But now VCs and founders are really praising the central bank initiative and the opportunities it has created.

“Open banking and the pix will face new challenges, and we look forward to seeing a lot of innovation around them,” Yoshimura said in another central bank draft. Said by mentioning.

It’s not just Pix, it’s not just BC# central bank procedure as well. Brazil’s Private Insurance Supervisor (Susep) Open Insurance Scheme means InsurTech could become the next sector to benefit from regulatory tailwinds.

To understand what’s going on in Brazilian regulations and how it affects startups, we reached out to an expert who knows the Latin American fintech ecosystem first-hand.

On the VC side, I made contact Amy Chee-Sam,Costa partners Noah Ventures, Its recent investment includes Rio de Janeiro-based outlets; When Armamun Diventures’ Javier Santiso For additional thoughts on InsurTech. On the startup side, we spoke to the CEO Rodrigo Teieiro of Recarga Pay When Pedrosonego of Riuler of TruePay..

There are many opportunities

“The open banking initiative adopted by the Central Bank of Brazil is an absolute tailwind for FinTech innovation,” Costanoa said. Amy Chee-Sam Noted. “When consumers take back control of their data, they create space for new entrants into the banking ecosystem, increase competition, and consumers get better, cheaper, fairer, and safer financing. You will have access to goods and services, including enabling Fintech to build for the past. [underserved] Or the unserved segment of the population,” she explained.

Recarga Pay is one of the start-ups taking advantage of new regulations to expand B2C services. “Our mission at Recarga Pay is to democratize mobile payments and financial services in Brazil. Therefore, open banking and Pix are the perfect recipes to accelerate our mission.

Teijeiro particularly appreciates Pix and its “incredible” orbit. “In just one year, the great stir that would benefit millions of Brazilians by making payments easier, faster and cheaper has been the Central Bank of Brazil. “Deserves recognition as ‘fintech startup of the year'”, and described Pix’s impact on mobilization as “a great blessing for Recarga Pay”.

Fintech and insurtech innovation in Brazil set to take off on regulatory tailwinds – TechCrunch Source link Fintech and insurtech innovation in Brazil set to take off on regulatory tailwinds – TechCrunch


Please enter your comment!
Please enter your name here