Digital banks reportedly led Brazilian banks to improve their profitability in the first half of this year.
The country's digital banks' annual return on equity (ROE) rose from 11.45% at the end of December to 19.1% at the end of June, outpacing the banking system as a whole, whose ROE rose from 14.23% to 15.11%. , Reuters reported on Thursday (November 21), citing data from the central bank's Financial Stability Report.
The central bank said the increase in digital banks was due to “the positive effect of operating leverage by some financial institutions through the monetization of their customer base and lower pressure from provisioning costs.”
Digital banks in Brazil include: Nubank, Banco Inter and C6 bankaccording to the report.
During the press conference, ayrton de aquinoThe central bank's supervisory director said in the report that digital banks have “robust” credit models and that their evolution reflects the central bank's efforts to foster innovation and competition.
Aquino reportedly referred to reports that Brazil's largest digital bank, Nubank, is considering moving to the UK, saying the central bank is “aware” of this.
On Wednesday (November 20), it was reported that NuBank, together with its holding company, is considering moving its legal base to the UK. New Holdingsis working with the UK Government on this move.
Nubank spokesperson said Bloomberg reported that the company is “continually reviewing its corporate legal structure” and has not yet made a decision on the move.
Latin America is a key target for fintech companies looking to transform financial services, a trend driven by digitally savvy consumers, unbanked and even underbanked populations, and fostering digital innovation. PYMNTS reported in September.
In May, Banco Inter announced plans to acquire the remaining 50% of the merchant acquirer. Granitogiving you full ownership of the company.
“Full ownership of Granito will further strengthen our value proposition to our customers and make our financial super app a complete suite of solutions for business owners and entrepreneurs.” Joan Vitor MeninCEO of Banco Inter parent company inter&cosaid in a press release. “This also further expands our footprint in the Brazilian market.”
