Next Money São Paulo 2017: Spotlight on Blockchain

The Next Money Global Conference Edition São Paulo held at the beginning of November (the only one in Latin America), brought together entrepreneurs, technology, and financial companies, specialists and investors. One of the most commented themes in various panels, even when it was not the main theme, was blockchain, which also relates to the themes of other panels, such as cryptocurrency and ICO (Initial Coin Offering). Executives of the companies like Latoex, Consensys, R3, CoinBR, Foxbit, and Alpha Ledger participated in these discussions.

Those who wanted to know more about the financial innovations produced in the country had a full day with the presentation of the FinTech competitors in the FF18 (besides, of course, the FinTechs participating in the panels, which are already relevant in their sectors). In the panels were companies such as Creditas and Zetra (credit), Beetech (currency exchange and remittances), Foxbit e CoinBR (Bitcoin). The panels were moderated by Bruno Diniz, Co-founder of Spiralem. Marcelo Bradaschia and Christina Hutchinson were also among the participating experts.

In the panel on ICO's, Fernando Bresslau, Country Manager of Ripio Brazil (formerly BitPagos, from Argentina), shared the case of the company. Ripio raised the equivalent of US $32 million with its token, based on the cryptocurrency Ethereum, which was sold in early November.

Brazilian FinTechs Swapy and OriginalMY have already released their white papers – documents detailing the process of issuing tokens and the company plans for the investment received – for their ICOs that are expected to happen soon.

Despite the apparent market excitement with blockchain technology, Edilson Osório Jr., CEO of OriginalMY argues that its use should be considered on a case-by-case basis. "The question is if you can do today without being on blockchain. If you can do that, you don’t have to do it on blockchain," he explained.

Traditional companies and innovation

Traditional companies show that they are not only following but also developing innovative initiatives internally. This is the case, for example, of Banco do Brasil, which has made some of its open banking projects available to Beta customers.

According to Pedro Begotti from Banco do Brasil, there are also initiatives mapped on the institution's innovation platform that have not yet been launched, and many will be launched shortly. "The structure we have built in the bank is already complete. What is missing is a change in the business model," Begotti added, talking about how innovations can change the role of large banks in the dynamics of the financial market in the country. Banks would have to adapt their business model.

Commenting on open banking, Microsoft's Head of Financial Services Adriano Bottas, brought up the European model, known as PSD2, as an example. "More than a 360º view of your customer, it allows you to have a 720º view, with the authorization of the client, through the exchange of data between institutions," he said.

The speakers agreed that the exchange of data can benefit customers who will have an offer of more services geared to their needs. In addition, open banking reduces risks to the institutions, which will have more information about consumers.

FF18 – Global Competition for Financial Innovation

The startup winner of this edition – Smarttbot, an investment robot platform that executes strategies in an automated way – goes to the semifinal at Next Money Hong Kong in December.

Meet the other competitors:

  • Portfy: Platform for portability of credit
  • Tá pago: Benefits management platform for smartphone
  • Kavod Lending: Peer-to-peer lending
  • Kakau: Residential insurance online
  • Appolice: Application to help brokers connect insurers and customers
  • Quartilho: Marketplace for anticipation of receipts
  • NextOne: Broker application that facilitates insurer processes

Mariana Rodrigues

Mariana Rodrigues is a regular contributor to MEDICI and is focused on the FinTech market in Brazil.

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