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 1
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.