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How Three Banks Evolved Into FinTech to Excel in the Leading Financial Market in Latin America

Small banks have realized that digital accounts provide an opportunity to overcome barriers such as agency costs and physical distance from customers, allowing them to attract the previously unattainable share of consumers through technology.

Together, the digital accounts of Inter, Neon and Original count nearly 400,000 customers. The three came from smaller banks, and two of them did not even offer a digital account in early 2016.

For the big banks, free digital account opening is expensive. Since the Central Bank allowed banks to offer digital-only accounts in 2011, Itaú, Banco do Brasil and Bradesco have already launched and suspended their free digital account models. Two of them re-launched: Bradesco, which now charges for the service, and BB, which reshaped the model.

Why the free account came out expensive to the big banks

When digital accounts were authorized, it seemed like ...

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