Business

Brazil is the 5th largest global destination for investments in fintechs

The country's segment received a total investment of $1.6 billion last year

Brazil is the 5th largest global destination for investments in fintechs. Photo: Shutterstock
Photo: Shutterstock
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  • Nubank and Inter represent a important slice of the investments in Brazilian fintechs;
  • Brazil was ahead of Germany and Australia, developed markets in this field.

Brazil has been establishing itself in the ranking of most important global hubs for fintechs. As O Estado de S. Paulo reported, based on Accenture‘s index, Brazil is the fifth largest investment destination in terms of new digital financial companies. The country received total investments of $1.6 billion last year. The amount is three times bigger than in 2018.

READ ALSO: Latin America is becoming the land of fintechs

In terms of new investments, Brazilian fintech market shows up after the American ($26.1 billion), British ($6.3 billion), Indian ($3.7 billion) and Chinese ($1.9 billion) ones, but ahead of other developed digital markets such as the German ($ 1.5 billion) and Australian ($1.1 billion).

READ ALSO: Profits of Brazilian neobank Banco Inter increased by 16.8% in 2019

The survey confirms what previous reports were already showing: investments in Brazilian fintechs grow more and more, as neobanks increase their profit.

READ ALSO: Brazilian neobank Nubank saw its revenue double and the number of customers triple in 2019

Nubank and Banco Inter represent an important slice in the spike of investments during recent years. The two large-scale fintechs attracted, together, $833 million in investments last year. According to O Estado de S. Paulo, Nubank has raised $400 million in investments and Banco Inter received another $433 million.