Fintechs And Their Regulation In Brazil

Like other countries, Brazil is experiencing the rise of new high technology-based financial services providers, which are known here also by the English neologism: Fintechs.

Some Fintechs challenge the traditional financial system by offering innovative, more user-friendly and cheaper services – at least until they become big enough to dominate the market and impose prices. In a highly regulated market as is the Brazilian financial sector, not all the above benefits will necessarily be present: either the Fintechs will offer ancillary, less value-added services, such as organization of personal expenses, or their revolutionary ideas will fall within any kind of regulated, state-supervised activity – exactly as the traditional institutions.