Brazil has exhibited rapid growth in fintech activity within the overall financial system, aided by a supportive regulatory framework.
Fintech growth has expanded credit availability and widened the range of consumer financial products and services while spurring the more dominant Brazilian banking sector to respond by enhancing its products, services, branches and platforms.
Nevertheless, the pace of growth, lower degree of regulation, sensitivity to competition and changes in economic conditions are potential risks that warrant monitoring and constrain ratings.
Fitch Ratings answers investors’ key questions related to fintechs’ rating criteria, regulation, credit considerations, impact on banks, operating environment and regional comparisons.
Source: Fitchratings
