Number of fintechs in Brazil grew 28% this year in comparison to 2019

Payments and financial management are the ones that lead the ranking of fintechs in Brazil

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  • Payments maintained its position as the main driver of growth for the Brazilian fintech ecosystem;
  • According to a Radar FintechLab survey, Open Banking and PIX regulations in Brazil made the number of new fintechs surge in the country.

The number of fintechs operating in Brazil went from 604 in June last year to 771 in August this year, a 28% growth, according to the 9th edition of Radar Fintechlab survey.

FintechLab co-founder, Fábio Gonsalez, said that there is a high number of new firms present in this edition. Of the 771 companies present, 270 of them, about 35% ,were not included in the previous version of the report. “It is a strong indication that they are startups that are less than a year old. This proves once again that the ecosystem continues to find opportunities to improve services and create new solutions that are very strongly influenced by regulatory advances such as Open Banking and PIX, for example ”, he says.

READ ALSO: Brazil’s PIX will allow utility bill payments and cash withdrawals in stores

The payments sector maintained its position as the main driver of growth for the Brazilian fintech ecosystem, according to the report. It now gathers 190 companies against 151 in the previous version, which represents a 26% increase in the number of those fintechs.

The ones dedicated to financial management are on the second position in the ranking, with 122 startups, surpassing the ones specialized in loans (114), traditional holders of this position.

READ ALSO: Brazilian Central Bank postpones open banking governance structure

Also co-founder of FintechLab, Marcelo Bradaschia, stated that the significant volume of new fintechs detected may be signaling the consolidation of a second wave of financial startups emerging, already seeking to adapt to the new business environment that is about to be started.

By establishing Open Banking, regulatory authorities further empower consumers who become the absolute owners of their data. Opportunities are created to expand collaboration between traditional financial institutions and fintechs while instant payments further popularize technological solutions as facilitators of people’s lives.

Marcelo Bradaschia, co-founder of FintechLab

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