that will be injected. Fintechs' presence
in the market will reduce credit costs and
enhance efficiency in the local banking
market, which is highly concentrated and
certainly will be another option to small
businesses that pay extremely high rates
in their traditional credit transactions.
cause the development of an attractive
environment for foreign investments in
the financial market and will increase
competition in this highly concentrated
market. Such a set of rules offers a
secure legal benchmark to the foreign
investors and also matches the fintechs to
other kinds of national, small-structured
companies (startups). In addition, it will
facilitate the growth of Brazilian fintechs'
investments and also the entrance of
foreign companies in the Brazilian
financial sector.
As BACEN has noted, the Decree's
main intention is "boosting new
companies' entrance, enhancing
competition and developing an innovation
process." After the decree was issued,
it declared "the authorization process
is efficient, compatible with the pace
fintechs operate."
simplifying foreign investments in banks
and other financial institutions, but so far,
there is no new regulation in place. The
Decree is the first step of the Brazilian
government's strategy to continue to open
the financial market and enhance foreign
investments in local financial markets.