Fintech lending: rising market in Brazil

The Brazilian credit market is characterized by high interest rates and a level of bureaucracy often considered excessive by borrowers. With the intensive use of technology that is characteristic of fintechs, startups not only compete with traditional banks in rates and special conditions for offering credit, but mainly by improving the user experience.

In this context, there has been an expansion of fintechs in the lending market, as the Distrito inside Fintech Report reveals. In 2020 fintechs moved R$4 trillion in loans for businesses and individuals and received capital contributions of more than US$352 million, 13% higher than in 2019. Moreover, in a survey by PwC Brazil and the Brazilian Association of Digital Credit, 48% of the fintechs interviewed analyze the risk of a credit proposal within an hour and in 46%, the credit approval occurs within 24 hours after the loan request