Inter&Co, a digital bank established in 1994 in Brazil, is now expanding its operations internationally, specifically targeting Latin American immigrants, with a focus on the Brazilian community. Led by João Vitor Menin, the company aims to double its client base and achieve 30% efficiency and a return on equity of 30% by 2027. The firm’s net profit reached BRL 352 million ($70 million) for 2023, with a significant portion earned in the fourth quarter driven by its credit portfolio which grew four times the national average.
In an effort to replicate its success beyond its home market, Inter&Co established its Miami headquarters a year ago and launched a financial super app offering a range of services such as remittances, banking, investments, mortgages, and a rewards program. The company’s unique retail approach in the US market aims to attract Latin Americans seeking an easier way to access financial services. The goal is to surpass 4 million global accounts in the US within the next year, with 1 million clients established in the US. Despite facing competition from various players in the market, Menin believes Inter’s product offerings set them apart from both local and global competitors.
To boost brand awareness among the Brazilian expatriate community in central Florida, Inter&Co acquired the naming rights to soccer club Orlando City and plans to open a customer lounge nearby in the coming weeks. With a lean operation of approximately 70 employees in the US, the neobank primarily operates from its software factory based in Brazil. The firm’s technology stack, supported by companies such as AWS and Salesforce, integrates artificial intelligence (AI) into its product development to enhance customer service, cross-selling, credit assessments, and other areas of the business.
Navigating the regulatory and operational aspects of setting up an international operation in the US involved strategic moves such as the acquisition of remittances fintech Usend and partnering with Community Federal Services Bank as their financial back office. Inter&Co plans to continue enhancing its super app by adding features such as a credit card with a loyalty program and an insurance offering. Menin believes that the US retail banking system is lagging behind in technology compared to markets like Brazil, where payments and transactions are fast and digital. The company is preparing for the launch of FedNow, the new instant payment infrastructure by the Federal Reserve, which will further drive the adoption of digital banking in the US.
With a focus on the Brazilian and Latino community for now, Inter&Co aims to position itself strongly in the US digital banking landscape. Menin is confident that when technology and regulation align to enable a leap in digital banking in the US, Inter&Co will be well-prepared to compete. The firm’s innovative product offerings, deep integration of AI in its operations, and strategic partnerships position it for success in the competitive US market.
