A Brief look at the Brazilian Fintech Scene

Brazil Fintech

It’s been a while since the last time I wrote a post, mainly due to being very occupied at weekends and also changing jobs.

How time flies! It’s been over a year since I caught the fintech bug and my interest remains strong.

For this post (and like previous posts) I have linked my interests in the world of fintech and countries.

I’ve always had a fascination with Brazil which started at an early age from seeing their amazing squad from France ’98 to learning about the country in a Year 8 Geography class.

I was fortunate enough to visit the country eight years ago and spent a month in Southern Brazil.

So what’s the fintech scene in Brazil like? Similar to many developing countries, segments of the Brazilian fintech ecosystem is rather segmented and are more developed in some areas. Data from Brazilian Institute for Applied Economic Research (Ipea) shows that over 50 million adults in the Latin American country do not have a bank account. In addition, data gathered from Brazilian Telecommunications Agency, Anatel showed that there are over 282 million mobile activations in Brazil. Mobile is at the forefront and as a result, fintechs have therefore decided to make their services more digital and provide a sound mobile experience for the consumer.

Brazilian Fintech: Who are the big players?

Brazilian fintech

So who are the Neymars of Brazilian fintech? There are a quite a few fintechs in the country, there are so many to mention with new entrants that I have mentioned the ones that have really left their mark in Brazilian fintech so far.

Guia Bolso –  Brazil’s leading personal finance platform. The app has around a million users.

FoxBit – The bitcoin exchange company is the country’s crytocurrency leader.

Nubank –  The São Paulo based fintech is known for its no-fee credit card that is managed via a mobile app.

ZeroPaper – A web platform that combines software and services that increase the chances of survival of micro and small enterprises. It generates detailed reports and tracks KPIs, in order for small business owners to manage their finances more efficiently.

Magnetis – In layman’s terms, Magnetis is a digital advisor which helps investors become more knowledgable about their investment portfolios.

Nibo – An online software that enables companies and accountants to manage and control their finances.

Vindi – A platform that provides invoices and payment gateways for Brazilian SMEs.

BankFacil – The concept behinf BankFacil is to provide consumer loans to Brazilians in an inexpensive way.

Bidu – The first company in Brazil to offer a smart search, comparison and purchase of insurance and financial services.

Above: The Brazilian fintech ecosystem’s segments, taken from Fintech Finance.

São Paulo: The new Latin American hub for Fintechs

sp fd

The fintech scene in Brazil is booming and São Paulo is putting financial technology on the map in Latin America. Deloitte featured the city in its latest global fintech hubs index.

Brazil has more fintech startups than any other country in Latin America, with venture capital investment reaching US$161 million in 2016. (Nearshore Americas, April 2017)

Like a lot of large scale banks who are looking to transform the way they conduct their products and services, Banco do Brasil has also jumped onto the fintech bandwagon and has setup its very own lab in Silicon Valley.

Back in Brazil, the country’s largest bank is heavily working on digital innovation by organising hackathons for employees and students respectively to conducting various innovation programs.

From labs and innovation programs, events in São Paulo have also helped Brazilian fintech blossom. Previous events such as the São Paulo Fintech Summit which had a lot of speakers from various fintech companies. The general consensus at the summit was that Brazilian banks have successfully made a digital transition, but are still finding ways to improve their online capabilities and offer a great user experience.

The 2015 summit showed that despite the country’s economic and political situations, the fintech scene is ripe. The future looks bright for fintech in Brazil with the likes of Nubank that won the Marketers That Matter Award last year. The award goes to companies that have demonstrated innovation and the São Paulo company joins tech giants such as Google and Netflix on the list of winners.

Conducting business Brazil is not particularly easy with the complexity of tax and labour laws. The central bank has now made it easy for startups to collect their information digitally from customers. Luckily for the majority of Brazilian fintechs, their business models do not necessarily rely on any potential regulatory changes.

What are your thoughts on Brazilian fintech? I’d love to hear from you, feel free to connect via Linkedin, alternatively, tweet me @daviddhannoo.

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A look into Algeria’s World Cup opener

Algeria

After writing a brief post on the Iranian national team I thought I would continue with more ‘alternative’ World Cup themed posts. After watching Algeria’s opening campaign against Belgium and also like Iran being one of the lesser known teams in the tournament I thought I would gain an insight into the North African side’s recent game.

Algeria which has a population of around 38,700,000 inhabitants were the last African team to qualify for the 2014 World Cup and beat Burkina Faso in the second leg play-off place on away goals after a 3-2  first league defeat, Madjid Bougherra’s scrambled goal just before half time confirmed their place in Brazil. The Fennec Foxes have previously played in three World Cups (Spain ’82, Mexico ’86,  and the 2010 South Africa World Cup).

Last Tuesday Algeria faced Belgium at the Estádio Mineirão in Belo Horizonte and lost 2-1. The Fennec Foxes took lead in the 25th minute, Valencia’s Sofiane Feghouli converted from the spot; Algeria’s fan favourite was brought down by Belgium defender Jan Vertonghen and as a result referee Marco Rodríguez booked the 27 year old Spurs centre back.

In the 70th minute The Red Devils equalised, Wolfsburg’s Kevin De Bruyne found Marouane Fellaini in space who then headed the ball past Raïs M’Bolhi. Things went from bad to worse for the Algerians ten minutes later when substitute Dries Mertens put the game to bed by slotting the ball past M’Bolhi from close range from a well worked Belgian counter attack.

Similar to what the Iranian team has done in their recent games, Algeria sat back and let Belgium come into their half of the pitch. This actually worked for the North African side as Spurs’ Nacer Chadli failed to connect with Kevin De Bruyne on a number of occasions. Dries Mertens later replaced Chadli in the second half, manager Marc Wilmots’ tactical change had the desired effect that he was looking for as the Napoli player  as previously mentioned scored the winner in the 80th minute.

One major factor for Algeria was their talisman Sofiane Feghouli, the majority of The Fennec Foxes’ chances came from the Valencia player. Anyone who watches La Liga will know about the Algerian’s creativity and he showed his creative side once more by causing a threat in The Red Devils‘ final third.

One thing that was definitely part of Algeria’s plan as previously mentioned was to sit back and also to hit the Belgians on the break. Tonight they face South Korea at Internacional‘s Estádio Beira-Rio in Porto Alegre at 8pm GMT.

Hong Myung-Bo’s side drew 1-1 in their opening game against Russia in Cuiabá. The Taegeuk Warriors are undefeated against African opposition in the World Cup (they beat Togo 2-1 in 2006 and drew 2-2 with Nigeria in 2010).

It looks like Algerian manager Vahid Halilhodžić will stick to his 4-3-3 formation that he used against Belgium, according to sports stat site B Sports Halilhodžić could use Islam Slimani as a lone striker and use Feghouli on the right and Soudani on the left wings respectively. Having someone like Ferghouli on the wing would definitely help in terms of creativity and also ideal for whipping balls in from the right hand side.

I am going to go for 1-1 draw in Porto Alegre, South Korea failed to make chances against Russia and will most likely have a tough time in creating many chances against a well disciplined Algerian back four. Algeria also failed to make many chances against Belgium, the stats reveal that The Fennec Foxes had only three shots in the game.

 

An insight into the Iranian national team

Reza-Ghoochannejhad-Charlton-Athletic-Standard-Liege-Iran-

The 2014 World Cup commences in just two days time, hosts Brazil face Croatia at the Arena Corinthians stadium in São Paulo, whilst the media will be focusing on the likes of Neymar et al., I thought I would look into one of the tournament’s lesser known teams, Iran.

The Islamic Republic of Iran which has a population of 77,176,930 inhabitants and borders Armenia, Azerbaijan, and Turkmenistan are currently ranked Asia’s top side. Football is definitely one of the country’s most popular sports and the beautiful game was introduced to the Persian nation back in 1898 by British expats.

By 1907 the Iranian the British Ambassador at the time Cecil Spring-Rice founded the country’s first football tournament in Tehran which only had three teams (British Embassy of Great Britain, Indo-European Telegraph community, and the Imperial Bank of Persia).

The Tehran Football Association Club was formed in the same year, the aim of the organising body was to organise matches in the city, all teams that participated were made up of only British residents. Sometimes Iranian spectators would be used if a participating team were short of players.

The British influence definitely helped nurture the Iranian game and by 1941 the national team played their first ever game against Afghanistan and drew 0-0 in Kabul. Nine years later The Iranian Lions played their first ever FIFA international match against Turkey and lost 6-1 in Istanbul.

The national team throughout years have drastically improved since then and have featured in three previous World Cups (Argentina ’78, France ’98, Germany 2006). Brazil now being their fourth World Cup  tournament, this time coached by former Portugal manager Carlos Queiroz, Iran are currently ranked 34th in the FIFA World Rankings.

There was a lot of celebrating in Iran last June when the national team beat South Korea to qualify for the tournament; there were also celebrations in Tehran for political reasons as three days later Hassan Rouhani had been elected.

Iranian fans have been concerned about the lack preparation the team has had, since qualifying for the World Cup in Brazil “Team Melli” (as they are also commonly known as) have only played four 2015 Asia Cup qualifying games (Thailand twice, Lebanon, and Kuwait). Last Sunday they played Trinidad and Tobago in a warm up game in São Paulo and beat the Soca Warriors 2-0. Sepahan Isfahan FC ‘s Ehsan Hajsafi put The Iranian Lions just before half time.

Reza Ghoochannejhad (pictured above) who plays his trade at Championship side Charlton Athletic and once played for Dutch national youth teams before changing allegiances in 2012 doubled Iran’s lead from close range.

‘Gucci’ as he is known by his Charlton team mates is the most likely player to get on the Iranian score sheet. The twenty six year old striker scored nine times in first eleven matches in a Team Melli shirt. He has definitely been the most consistent player in the team and Iran will be heavily relying on his well known goalscoring ability.

At the back they lack consistency and have had an issue with choosing a first choice goalkeeper. Queiroz for sometime has been unhappy with long serving keeper Mehdi Rahmati who has played over seventy games for his country. Many are suggesting that German born Daniel Davari who plays for Grasshopper Zürich will take part in Iran’s Group F matches.

Iran face Nigeria in Curitiba on Monday 16th June, it looks like Queiroz will adopt a more of a defensive approach going into their first game with a 4-2-3-1 formation. This allows the likes of Reza Ghoochannejhad and Ashkan Dejagah to go on the counter attack whilst at the same time gives them the option to defend in large numbers. In contrast, their West African opponents are known for playing a more of attacking formation since Super Eagles boss Stephen Keshi has been in charge and will most likely opt for a 4-3-3 formation. The Iranian Lions will definitely be kept busy with Super Eagles trio Victor Moses, Emmanuel Emenike, and Ahmed Musa (if he starts, he recently picked up a thigh strain).  The Iranians also face Argentina and Bosnia & Herzegovina in their group and it is obviously fair to say that this group is not going to be a walk in a park for Asia’s no.1 ranked side. Although Iran will not be playing the most attractive football, they will definitely take advantage of any mistakes their opponents make when going forward; their stiff back line could be their saviour in the tournament.