August 28, 20 - 10:41 am - LABS

Brazilian state-owned Caixa to offer microcredit and insurance for low income through digital app

Brazilian state-owned bank Caixa Econômica Federal announced on Wednesday that it will include microcredit and low-income insurance in internet banking and its digital account, Caixa Tem app, available to Brazilians, reported G1.

The new products may be launched later this year and contribute to the bank’s next results, after a 16.1% reduction in profit in the second-quarter, compared to the previous period a year earlier. Caixa has said it opened 91.5 million accounts to pay emergency aid to Brazilians. To keep these accounts free of charge, the bank decided to launch products to make them profitable – such as microcredit, debit card and insurance.

In a press conference for the disclosure of financial results, Caixa’s CEO, Pedro Guimarães, stated that the technology for risk analysis and microcredit offer is already being developed. “Microcredit was one of the pillars of this management, but to loan from BRL 100, we will need a digital platform. Therefore, we will take advantage of Caixa Tem”, he said.