October 3, 2018 |
Changing times. The bread-and-butter menu that Brazilian banks had served to midsize investors throughout decades of high interest rates is no longer enough. With the days of double-digit rates gone, younger Brazilians have adopted a greater risk appetite than their parents who were content to stick with traditional savings and fixed-income products that tracked inflation.
“Brazilian investors used to be predominantly conservative,” says Paula Manzanék, head of funding and investment at Banco do Brasil. “The economic environment did not require a great deal of sophistication to achieve good returns.”
But the fall in the Selic, the basic rate set by the central bank, from 14.
Bank innovation and broader investment opportunities are fueling a taste for risk among Brazil’s middle class, pushing commercial banks to develop a brokerage model.