Bradesco launches digital bank, facing down Brazil fintechs

Banco Bradesco

30/10/2017 10:56

By Aluisio Alves 
    SAO PAULO, Oct 30 (Reuters) - Brazil's Banco Bradesco SA 
 BBDC4.SA  will present an all-digital franchise this week 
called Next, marking the biggest campaign of a major bank in 
Latin America's top economy to go head-to-head with financial 
technology startups, or fintechs. 
    Targeting tech-savvy Brazilians aged 18 to 34, Bradesco is 
partnering with big brands such as Apple Inc  AAPL.O , Uber 
Technologies Ltd and Microsoft Corp's  MSFT.O  Xbox to offer 
perks on plans that cost 20 reais to 40 reais ($6-12) per month. 
    In an interview, Mauricio Minas, Bradesco's vice president 
of technology, said the all-digital efficiency of Next allows it 
to offer lower rates than those charged at physical branches.  
    Still, he ruled out the idea of fighting fintech rivals by 
scrapping fees or offering the lowest possible interest rates. 
    "Those who have very low interest rates do not sustain 
themselves over time," said Minas. "Next will not be irrational 
with fees." 
    Bradesco's new initiative is just the latest example of how 
big Brazilian banks are being forced cut costs and innovate as 
they confront the threat of fast-growing fintechs.  
    Last week, Brazilian startup Nubank said it would expand 
from credit cards into digital accounts allowing users to make 
transfers, pay bills and earn more interest than an average 
savings account.  urn:newsml:reuters.com:*:nL2N1MZ18G 
    ($1 = 3.24 reais) 
 
 (Reporting by Aluisio Alves; Writing by Alexandra Alper; 
Editing by Louise Heavens) 
 ((Alexandra.Alper@thomsonreuters.com; 021-98186-5429; Reuters 
Messaging: alexandra.alper.thomsonreuters.com@reuters.net)) 
 
Keywords: BANCO BRADESCO NEXT/