Bradesco launches online bank as fintechs raise stakes in Brazil

The banking giant launched a new digital offering to fend off competition from new entrants in the financial services sector.

Brazilian banking giant Bradesco has launched its own online bank as competition from new market entrants heats up.

Online bank Next is hitting the market this week following beta testing the product over the last few weeks.

The main audience for the bank will be millennials, to whom the bank plans to offer perks from partners including Uber, Apple, and others.

Partnerships with companies that are familiar to prospective clients for the bank are also a way to identify habits of the customer base and offer relevant products and services.

Monthly fees ranging from 20-40 reais ($6-12) will be charged to customers - conversely, leaner competitor Nubank launched a mobile-centric bank account exempt from tariffs last week.

Bradesco is the fourth largest bank in Brazil. In addition to diversifying its digital offering, the firm has been publicly discussing its plans to redefine the operating model of its physical branch network.

The bank has recently launched a selection process to accelerate fintech startups developing products and services in areas including payments, security, client engagement, Internet of Things and blockchain.