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

Startups and VCs see opportunities in open banking, finance and insurance

brazilian instant payment Pix ended 2021 after successfully operating more than 8 billion transactions, according to statistics from the country’s central bank. That’s an impressive number for a show that only launched in November 2020 and shows how ubiquitous Pix has become in the country.

You can describe the Pix as “a government version of Venmo,” João Pedro Thompson, founder of fintech Z1, told TechCrunch. However, this analogy doesn’t quite capture the fact that Pix attracts a lot of digitally savvy teens who pay their friends for coffee. Otherwise, six out of 10 Brazilians would not use it.

In a country where many people are still unbanked and queuing to pay bills is part of everyday life, the impact of being able to pay anyone right away cannot be underestimated. In addition, Pix now supports more services, such as allowing you to withdraw funds from businesses.

Interestingly, Pix is ​​a corporate initiative, and is part of a wide range of public efforts to change Brazil’s financial landscape. “The central bank has done a tremendous job and Pix is ​​one of the most relevant structural changes,” he said. Bruno Yoshimura We were told by TechCrunch when we wrote about the fintech boom in Latin America.

I lived in Brazil, so this naturally piqued my interest. At the time, entrepreneurs were constantly complaining about bureaucracy, and their greatest hope was that institutions would stay out of the way. But now, venture capitalists and founders are praising the central bank for its initiatives and the opportunities it has created.

“Open Banking and Pix will both set the stage for new challenges, and we expect to see a lot of innovation around them,” Yoshimura said, referring to another central bank project.

It’s not just Pix, and it’s not just the BC# central bank agenda. The Brazilian Supervisory Authority for Private Insurance (Susep) is working on open insurance schemes, which means Insurtech could be the next sector to take advantage of the regulatory tailwind.

To understand what is happening with regulations in Brazil, and how this is affecting startups, I reached out to experts with first-hand knowledge of the Latin American fintech ecosystem.

On the venture capital side, I reached out to Amy Cheetham, a partner in Costanoa Ventures, whose recent investments include the Rio de Janeiro-based Plug; Alma Mundy Ventures Javier Santiso For more ideas on insurtech. On the startup side, I spoke with CEOs Rodrigo Tejero From RecargaPay and Pedro Sônego de Oliveira from TruePay.

Opportunities abound

“The open banking initiatives of the Central Bank of Brazil are certainly a favorable wind for fintech innovation,” Costano Amy Cheetham He said. “As consumers regain control of their data, it creates space for new entrants to the banking banking system and creates more competition, giving consumers access to better, cheaper, fairer and more secure financial products and services. This includes giving fintech companies the ability to build for the former. [underserved] or unserved segments of the population.

RecargaPay is one of the startups taking advantage of new regulations to expand B2C services. “Our mission at RecargaPay is to democratize mobile payments and financial services in Brazil, so Open Banking and Pix is ​​the perfect recipe for accelerating our mission,” said Tejero, founder of RecargaPay.

Tejiro particularly appreciates Pix and its “amazing” track. “What has been accomplished in just one year has been a massive disruption that has benefited millions of Brazilians by making their payments easier, faster and cheaper. For this reason, the Central Bank of Brazil deserves to be recognized as the “Best FinTech Startup of the Year,” he said, describing Pix’s impact on mobile money transfer is a “big boon for RecargaPay”.

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