Thinking about the fintech environment and financial innovations, 2020 was a milestone for introducing important regulatory and infrastructure changes in Brazil (with the regulatory sandbox, open banking and Pix - the local instant payments system), in addition to opening up the digital path as the main way for people to consume financial services in a world that requires low contact due to the pandemic.
The fintechs showed their resilience and attracted US$ 1.7 billion in investments in 90 deals according to the Brazilian consultancy Distrito, as opposed to US$ 910 million in 2019. That's a truly historic achievement for the local scene.
Opportunities for Swiss fintechs in Brazil
As the Brazilian fintech scene is remodelling with all the changes described above, Swiss fintechs could also benefit from the opportunities that this new moment will bring. Although both countries have very dynamic fintech environments, they operate in different patterns. Finding complementary spots to explore is the task for potential Swiss entrants. Brazil has to be seen by Swiss fintech as an opportunity to have access to larger market, but also to a market with distinct features that will bring new skills for your company or enhance your product to operate in a global scale.
It is important though to plan ahead this movement, Brazil is not for beginners. Understanding the peculiarities of the market and doing the necessary adaptations to the operation is key to success. It is highly advisable to be supported by local professionals that could guide the Swiss entrant in the regulatory environment as in the informal and cultural aspects. Certainly in a path with some challenges, but also with interesting rewards.
Talk to our local team at the Swiss Business Hub Brazil for individual consulting and support.
Learn more about the fintech ecosystem in the interview with Bruni Diniz in the video and download the report below.
