Rising rates dent competitive edge for Brazil's fintechs

Rising rates dent competitive edge for Brazil's fintechs

Corporate & Sovereign Strategy Economy & Policy Loans Brazil Capital Markets

Rising interest rates at home and in the United States could stifle the rapid growth enjoyed by financial technology firms in Brazil, while traditional banks are more equipped to deal with funding issues, analysts at Fitch Ratings and other sources told LatinFinance. "We are not expecting a big shift in bank dominance," said Claudio Gallina, a senior director at Fitch in Brazil. The central bank hiked the benchmark Selic rate in Brazil to 13.25% this month, marking a sharp increase from when the

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