- With the investment raised in a Series A round, Quanto intends to accelerate hiring and expand partnerships;
- Open banking will be implemented in a phased manner, starting on November 30, 2020 and ending in October 2021.
Quanto, the first open banking platform in Brazil, is announcing an investment round of $15 million in its Series A, led by the country’s two main banks – Bradesco and Itaú Unibanco, alongside Kaszek Ventures – which has already invested in names such as Nubank, Creditas and Quinto Andar – and Coatue.
Having the two largest Brazilian banks leading the round is a milestone for open banking in the world since in Europe and the US are facing difficulties in implementing open banking and having the support of traditional banks. According to Quanto, the round shows the potential that open banking has to generate a positive impact on the Brazilian market.
Created in Brazil in 2017, the amount raised in this round is splitted in equity and convertible debt. Bradesco’s participation was made through the Inovabra Ventures fund and Itaú Unibanco’s participation – which was made directly – is subject to approval by the Brazilian Central Bank. All investors enter into a minority stake and the founder and CEO, Ricardo Taveira, remains in control of Quanto.
“Open banking represents a change in the way we understand and consume financial services and it is encouraging to see the Brazilian market embrace this movement in such a positive way”, celebrates Taveira. “We have the potential in Brazil to lead the use of open banking in the world, and this round is proof of that,” he adds.
Quanto is based on the concept of data sharing with user consent to also allow financial institutions to distribute their products on third-party platforms, such as retailers and marketplaces, while also allowing banks and fintechs to incorporate third-party financial products into their own channels.
The company provides a standardized bank data API that, together with an advanced data analysis layer, can significantly reduce the time and cost of accessing bank account data. At the same time, Quanto gives final consumers control over their financial information through a dedicated website, allowing them to contract and manipulate financial services through this same API.
With the investment raised in its Series A, Quanto intends to accelerate hiring and expand partnerships. “The mission of Quanto to bring more balance to financial services is extremely necessary both in Brazil and in general in Latin America, and we are excited to be able to support them to achieve this goal,” said Santiago Fossatti, partner at Kaszek Ventures.
“We were fortunate to invest in a series of fintech platforms that changed the market in the USA and we believe Quanto will also shape the market in Latin America in a similar way. Open banking leveled the playing field for brands, fintechs and banks, and Quanto is already enabling an acceleration in the pace of innovation in financial services. We are excited to partner with Ricardo and Quanto team to build this platform ”, adds Michael Gilroy, General Parner of Coatue.
According to the Brazilian Central Bank, open banking will be implemented in a phased manner, starting on November 30, 2020 and ending in October 2021.