Brazilian online lender Inter&Co is expanding its efforts in the United States, with a focus on replicating its success in Brazil’s online banking sector.
With a customer base of 32 million clients in Brazil, Inter has gained popularity by offering a wide range of products, including credit cards, mortgages and investments through its smartphone app, Reuters reported Wednesday (June 5).
However, breaking into the American market poses challenges for Inter, as FinTechs have struggled to compete against established banks, according to the report.
Inter launched its U.S. operations in 2021, opening a headquarters in Miami, and added a client “lounge” in Orlando in May. Both Miami and Orlando have large Brazilian migrant and tourist populations, the report said.
Inter CEO João Vitor Menin told Reuters that he views Orlando as an ideal location due to its significant Brazilian community. Initially, the company plans to target Brazilians traveling to or living in the United States, and then expand its services to other American clients interested in holding a U.S. dollar account, which Inter calls a global account.
With 3.1 million clients for its global accounts, primarily based in Brazil, Inter aims to tap into the U.S. market, per the report. Menin said that Inter’s account offerings will set the company apart from its competitors, emphasizing the importance of providing a positive customer experience. Satisfied clients are likely to share their experiences through word of mouth.
Inter’s expansion strategy into the United States focuses on developing the right product and investing in its team, making it an asset-light operation, according to the report.
SoftBank Group, a Japanese technology investor, holds a nearly 15% stake in Inter, providing support for the company’s goals, the report said. Inter aims to reach a total of 60 million clients by the end of 2027, with an estimated 6 million clients holding global accounts if the current growth rate continues.
In addition to its U.S. expansion, Inter is considering adding the option to trade in European markets and currencies in the future, per the report.
A super app that offers everything from banking and investing to peer-to-peer (P2P) payments has potential across the globe, Menin told PYMNTS’ Karen Webster in an interview posted in 2022.
“We’re building something here — and we’re building something big,” Menin said.
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