Opening the Investment World to Individuals: The Experience of FinTech Startups in Brazil

Brazilians are increasingly exploring opportunities with investment instruments, moving money out of traditional savings accounts. While in the last year, there were more withdrawals than savings deposits, Treasury Direct grew 73.9% in 12 months, up to July. That month, the Treasury Direct reached a record with 1.5 million registered investors.

Equity investments have also increased over the last two years. This year, up to August, approximately 594,000 individuals registered as investors on the São Paulo Stock Exchange. The number is 5.3% higher than last year and 6.6% higher than in 2015.

But considering there are more than a thousand of investment options in the Brazilian market, getting out of savings is not so simple. In this scenario, new FinTech startups like Renda Fixa and Yubb offer a simplified way for the customer to choose where to apply their money. With them, the investor no longer needs to search through various brokerages or banks the applications offered, as well as information such as term and profitability. He can have all this information in one place.

Renda Fixa presents more than 1,400 fixed income assets from 22 institutions. Yubb also offers more than a thousand options for investments between fixed income, variable income and investment funds, sought in 274 financial institutions.

Both applications have more than 60,000 active users per month. "Over the last year our platform has tripled in the number of active users," said Renda Fixa CEO, Francis Wagner.

Also in the last year, Yubb has grown a monthly average of 20% – "in a few months, we have grown more than 60%," said Bernardo Pascowitch, CEO.

These startups do not charge customers for the service. "Our monetization is done through advertising and the services we provide to our partner institutions," explained Wagner.

Using Renda Fixa, the investor can open an account and invest directly through the application.

In order to attract customers, the strategy of the company is to provide content. "This month we have partnered with one of the biggest influential bloggers of investments and finances in Brazil and will bring unique content to our users," he concluded.

Yubb has a round of fundraising to accelerate operations and growth. The FinTech has its monetization with a sale of 'leads' to financial institutions. "Our vision is that Yubb's investment search engine needs to be totally free to allow people to find options to better apply their money and monetize their assets. Only then people will achieve financial stability," said Pascowitch.

The founder of Yubb explains that the client cannot make the transactions by the application to maintain the exemption. "We do not make transactions [like a brokerage]. So the money does not go through Yubb: the user finds an asset in the application and, if he wants to make that investment, he is redirected to the page of a bank, broker or other investment company. We also do not consult or indicate investments. Our proposal is to show what exists to invest in a very impartial and exempt manner."

This content was published in partnership with StartSe, a leading Brazilian website about startups. The portal contains the StartSe Base, the largest database of startups in the country, with more than 5,000 registered companies.