More About the Boom of Fintechs

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The financial technology ecosystem is being stimulated by innovative startups every day and has been growing exponentially, garnering consistently positive results for almost a decade.

Millions of people have entered this universe with new digital accounts in recent years, and numbers continues to rise. Regarding the market, according to a study by BCG (Boston Consulting Group), USD 34 billion was invested in fintechs globally in the third quarter of 2021 alone — a number that exceeds the same quarter of the previous year by 173% and 90% more than the entire year of 2020.

It’s a similar story in Brazil. According to the Radar FintechLab report, the number of financial efficiency startups jumped from 604 to 772 from June 2019 to August 2020. Today, there are 1,289 operating in Brazil, according to the Inside Fintech study, by Distrito. There are notable success cases here, with some having already achieved unicorn status and several others being candidates for it.

Perhaps one of the most interesting points in the fintech boom equation is precisely the insertion point of banks, radically larger than them, but with the intrinsic rigidity of large institutions. Many suggest a union between the two so as to achieve mutual benefit, especially during times of crisis. Banks bring a wealth of expertise built over many decades in the market and fintechs, with their familiarity with technology and more flexible structures, allow them to act and adapt quickly.

Navigating the threat x opportunity dichotomy, may the best decisions for the market win!