Open banking regulation in Brazil should make the relationship between banks and financial technology companies even closer, Banco Bradesco SA CEO Octavio de Lazari said at a conference in São Paulo, Brazil.
Speaking at Febraban’s Ciab banking and technology conference, the executive warned banks not to think of fintech firms as competitors, but rather as potential partners. “They are great partners that help us deliver product and services of better quality, with a more friendly experience and in a more accurate and timely way, we have to be careful with what represents a menace and what is an opportunity,” he said.
“We have a robust portfolio, credibility, funding, credit alliance, and compliance. They have agility, creativity, timeliness … The partnership with fintechs is a victorious marriage for our industry,” he added.
With over 300 startups, Brazil is currently seen as the fintech hub within Latin America, thanks in part to regulatory clarity. In April, Banco Central do Brasil put forward provisions for open banking in the country, a decision that is expected to shake up the offer from financial services providers.
Speaking with journalists on the sidelines of the event, Lazari said Bradesco is already building a platform from which he expects to tie in applications from third-party service providers, both financial and non-financial, like Uber or food deliveries. “The bank owns the distribution of nonbanking services … nothing will prevent us from selling products of other platforms, even other banks,” he noted. “Why not?”
He also noted the important role that fintech firms will play in protecting sensitive customer data, highlighting specifically the validation services that some firms provide.
Loan demand pegged to GDP
The Bradesco executive also acknowledged that a slowing Brazilian economy is hampering loan demand in both the first and second quarter of the year. There is “no way of reversing” the trend, he said, unless the GDP picks up again.
“If pension reform gets approved early, in late July or August, we will get a bit of growth in the last quarter of the year,” he added.