Brazil has some of the highest borrowing costs in the world — even after five straight rate cuts, the benchmark rate is still just under 14%, and for millions of families, credit cards and personal loans carry triple-digit interest rates. One fintech is trying to change that by letting people borrow against what they already own at much lower rates. Creditas has raised about $1 billion and is now betting big on AI as it pushes to break even this year. Joining me is Sergio Furio, Founder and CEO of Creditas. Sergio, thank you so much for being with us today.
Thank you very much. Thank you for hosting.
You are speaking at the Dubai Fintech Summit next month. What is your message to the Gulf?
The message is very simple. Technology is disrupting every single aspect of our lives. But a couple of fundamental things never change. One — people want access to cheap credit. Two — investors want access to high-yielding assets. That is what we do. In Brazil and in emerging markets generally, people have properties that we can use to provide cheaper liquidity and a better asset class for investors.
Creditas operates more like an asset manager than a bank. What does that mean?
The traditional banking model — taking deposits, bearing regulatory capital, taking all the credit and liquidity risk — is asset heavy and constrains profitability. What we do instead is partner with fixed income investors to use their funds to put into investment vehicles and deploy that capital to the end consumer. That increases our profitability, reduces the capital we need to bear, and is better for both borrowers and investors.
How hard is it for the average Brazilian to borrow money?
More than hard, it is very expensive. Personal loans are at 170%. Credit cards at 250%. Overdraft at 300%. And credit penetration is 75 to 80% of the Brazilian population — so people with decent incomes are still getting into debt at these rates. Sometimes it is a lack of financial education, sometimes it is access. We are trying to give customers who own properties and cars access to cheaper liquidity instead.
Revenue per worker has nearly doubled. Does AI mean fewer jobs?
The number for the last four years is actually fivefold higher productivity per employee — not double. We doubled in revenues and we are half the team we had four years ago. The short answer is yes, it means less employment in companies like ours. But that lower need for employees reduces our costs, which allows us to deploy cheaper financing for consumers. Cheaper consumer financing means higher demand for credit, which generates employment in other areas. What we do not think anymore is that to do financial services you need large banks with 50,000 employees. You can do it with much more focused teams doing very interesting work — builders who create solutions that can be deployed into end consumer products.
What can the Gulf learn from Brazil’s fintech boom?
Three things. First, the importance of a supportive central bank — in Brazil, the central bank sponsored instant payments through Pix and that was transformative. Second, the importance of a deep capital markets environment — the reason we were born in Brazil is there was a very deep fixed income investor market looking for high-quality assets. That is essential to avoid the trap of getting a banking licence and taking deposits. Third, make sure to avoid just the obvious. Payments has had an amazing decade. Now it is the turn of credit and investments — those are the next generation of products that will see dramatic transformation.
Are Gulf investors putting money into Latin America?
Yes. Gulf investors and Latin America have been partners for some years — ADIA and other investors have been investing in both private and public companies. The area that still needs to happen is those investors putting money into fixed income assets as a way of diversifying. The Brazilian real at 13% plus interest rate — the spreads you can get versus the volatility are very interesting.
What should we watch for in Latin American fintech?
AI is really changing the name of the game because of the relatively low productivity of these emerging markets — and you can see it directly in the P&L. Not a theory. Actual results. Also the impact of blockchain in improving the productivity of fixed income assets. And the movement from payments as the key vertical into credit and investments — that is the next wave.
Thank you so much for joining us.
Thank you very much.
