Most Brazilian fintechs focused on credit are in trouble.
A small view about the credit market moment
In the last two years I received news of a dozen cases about credit fintechs failing.
The high risk of providing loan credits to companies and consumer loans to people is a big challenge to the banks. Imagine for fintechs.
I know at least 20 cases of credit fintechs backed by VCs alleging to stop their operations. The only case that deserves a mention in this market is Creditas. They are publishing earnings frequently.
A small list of Brazilian credit fintechs
Capta Money, Intoo, Crediário, Jurus, Meu App Crédito, Easy Crédito, Planejei, Juntos com vc, Contas do Lar, Biz Capital, BxBlue, Finexa and Guruprev are some examples of Brazilian credit fintechs that stopped their operations in the last two years.
The Brazilian Central Bank Resolution CMN nº 5.159/2024 was created to help these startups, but the high costs to raise funds, delinquency, fraud and low margins are the real monsters to run a company like these.
One more time, the Brazilian credit market is in the banks hands.