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

Start-ups and VCs are finding opportunities in open banking, finance and insurance

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

Pix can be described as “a government-created version of Venmo.” João Pedro Thompson, Founder of fintech Z1 I told TechCrunch. However, this analogy does not fully capture the fact that Pix not only pays coffee to friends, but also appeals to many, to digitally savvy teens.Otherwise it will not be used by 6 out of 10 brazilians..

In countries where many people are not yet in the bank and lining up to pay invoices is part of their daily lives, the impact of being able to pay immediately to anyone is modest. I can’t say. In addition, Pix now supports more services, including: Withdraw cash from a company..

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

This was of course intriguing to me as I lived in Brazil. At that time, entrepreneurs were constantly complaining about bureaucracy, and their greatest hope was to keep the institution out of the way. But now VCs and founders are really praising the central bank’s initiative and the opportunities it has created.

“Both open banking and pix will level new challenges, and we look forward to seeing a lot of innovation around them,” Yoshimura said in another central bank project. Said by mentioning.

It’s not just Pix, it’s not just the central bank BC # proceedings also.Brazil’s Private Insurance Supervisor (Susep) Open insurance planThis means that InsurTech could become the next sector to benefit from regulatory tailwinds.

To understand what’s happening in Brazilian regulation and how this is affecting startups, we contacted an expert who knows the Latin American fintech ecosystem directly.

On the VC side, I got in touch Amy Chee Sam,Of partners Costa Noah Ventures, Its recent investment Includes Rio de Janeiro-based plugs; When Armamun DiventuresJavier Santiso For additional thoughts on InsurTech.On the startup side, we talked to the CEO Rodrigo Teieiro from Recarga Pay When Pedrosonego de Riuler from 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 Said. “When consumers regain control of their data, they create space for new entrants to the banking ecosystem, intensify competition, and consumers get better, cheaper, fairer, and safer finance. You will have access to goods and services, including empowering Fintech to build for the past. [underserved] Or the unserviced segment of the population, “she explained.

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

Teijeiro especially appreciates Pix and its “incredible” orbit. “In just one year, the tremendous turmoil that would benefit millions of Brazilians by making payments easier, faster and cheaper was the Central Bank of Brazil. “Deserves to be recognized as a” fintech startup of the year “,” and described the impact of Pix 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

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