Brazil Market

Brazil Fintech Breaking Barriers into LATAM and US

There have been many LATAM business movements over the past year, but there is one in particular that will be breaking barriers.

Recently, a fintech in Brazil, FitBank, announced that it plans on opening a new office in the US, as well as launching operations in other LATAM countries.

Let’s jump into what fintech is, what Fitbank is, and learn about what this expansion means for the fintech business!

What is Fintech?

First, let’s clarify what a fintech is.

Fintech is a combination of the words “financial” and “technology”. It is used to describe technology that seeks to improve the use of financial services. 

What are some examples of fintech? Here is a list of a few big fintech companies:

  • Ant Financial
  • Stripe
  • Ripple
  • Coinbase
  • Credit Karma

Fintech has improved many parts of our digital lives and it doesn’t seem to be slowing down any time soon.

FitBank’s Background

Next, let’s discuss what FitBank is. 

FitBank, short for FitBank Pagamentos Eletronicos SA, is a Brazilian fintech firm that is supported by JP-Morgan, one of the world’s biggest banks. FitBank claims to be one of Brazilians’ biggest open banking platforms.

Founded in 2015, FitBank is a payment-service company that has over 100 clients in Brazil. These clients include fintech firms, banks, and nonfinancial firms.

According to FitBank’s Chief Executive Otavia Farah, “payment technology doesn’t vary much from nation to nation” and “we can really go global, but first we are prioritizing nations where we already have demands from clients”.

Farah also claims that the Brazilian fintech’s open platform can both manage and analyze payments, as well as locate and solve issues. 

Recent Moves By FitBank

FitBank has been looking to go global. One of their main strategies to do so is to team up with JP Morgan. JP Morgan is the largest US bank and the 6th largest bank in the world. 

JP Morgan, a New York-based bank, obtained a minority stake in this Brazilian fintech, giving their head of wholesale payments for Brazil, Renata Vilanova Lobo, a seat on Fitbank’s board. 

To go global, last year FitBank broke barriers by opening an office in the US and began spreading to other LATAM countries. It is expecting to open operations in Peru, Mexico, and Colombia.

Impact on Brazil Fintech and Potential in LATAM & US

In Latin America, Brazil has the second-largest number of fintech startups and 64% of Brazilians are considered to be “fintech adopters”.

That being said, fintech adoption and expansion are still growing in Brazil.

FitBank’s global expansion is proof of this. More and more Brazilian fintech companies are starting to expand their businesses outside of Latin America so that they can diversify their businesses. 

If FitBank’s global expansion is successful, it will encourage other fintech firms, which can lead to an even larger increase in Brazilian fintech expansion to the US and LATAM!

Looking to Expand?

Once a fintech decides to expand globally, it will need the strategy and marketing plan to do so successfully. Fortunately, Colibri Content can help with that! We are experts at expanding businesses into new markets.

Do you need help with your digital marketing, from blog to video? Contact us at Colibri Content!

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