JPMorgan-backed digital bank C6 to open Brazil branch network

Banco Santander Brasil SA

19/10/2022 16:24

By Aluisio Alves
       SÃO PAULO, Oct 19 (Reuters) - Brazilian lender C6 Bank
is set to open its first five brick-and-mortar branches in the
country in the next few weeks, an executive has revealed,
enhancing the competition between the JPMorgan-backed digital
bank and large retail lenders for high income clients in Latin
America's largest economy.
    C6's head of high income, Felipe Wey, told Reuters on
Tuesday that the bank's goal for the coming months is to have at
least one office in each of the country's capital cities and in
other towns with a large number of potential wealthy clients.
    He did not disclose an exact target, but said "dozens of
offices are expected to be opened by the end of 2023."
    The move comes about a month after C6, established in 2019,
launched Carbon, a platform focused on the roughly 20 million
account holders who have an income of more than 15,000 reais
($2,862.16) per month or more than 150,000 reais in investments.
    It highlights how digital platforms with a lighter structure
than large retail banks are gradually seeing opportunities to
expand their customer base and do more business with current
clients by owning physical branches.
    C6's face-to-face units will have about 10 employees each
and are expected to increase client engagement by providing a
more detailed and customized approach than its larger rivals,
said Wey, a former executive at Itau Unibanco's  ITUB4.SA  high
income brand Personnalite.
    Similar units in Brazilian large cap lenders include Banco
Bradesco SA's Prime  BBDC4.SA  and Banco Santander Brasil SA's
Van Gogh  SANB11.SA .
    With the physical branches initiative, C6 aims to increase
its share in the high income market, which it expects to cover
some 5 million people in the country.
    The move also comes as digital financial services platforms
look to boost their revenue per customer at a time when
investors have been more skeptical of high-growth businesses,
given the backdrop of high interest rates.
    In 2021, the purchase of a 40% stake in C6 marked JPMorgan
Chase & Co's  JPM.N  debut in Brazil's retail banking. C6 was
founded by former partners at Banco BTG Pactual SA  BPAC11.SA ,
Latin America's largest independent investment bank.
($1 = 5.2408 reais)
 (Reporting by Aluisio Alves; Writing by Gabriel Araujo; Editing
by Josie Kao)
 ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))