Brazil's fintech segment sees growth

The number of financial services startups has seen a 34 percent increase this year when compared to 2018, according to a new study.

The fintech segment continues to grow in Brazil with most startups focused on B2B offerings, according to a new study.

There are 504 fintechs operating in Brazil across 10 segments currently - this compares to 377 fintechs active in Brazil in 2018, according to the data compiled by Finnovation, a local website that has been monitoring the segment since 2011.

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According to the study, business-focused fintechs, who often cater for incumbents, represent 61 percent of all startups operating in the sector. This compares with the numbers from last year, when 48 percent of all fintechs were B2B-focused.

When it comes to the key differentiating factors of the fintechs covered in the study, 62 percent are innovating through a new business model, while 38 percent have technology application to a business issue as their key advantage.

Companies active in the payments sector represent the largest slice of the fintech pie in Brazil, accounting for 26 percent of the ventures listed, up 3 percent on the numbers from 2018.

Credit-focused ventures represent 17 percent of all Brazilian fintechs, an increase of 2 percent from last year.