Brazilian lender Banco Inter, the first 100% digital bank in Brazil, and Banco ABC Brasil, the Brazilian division of Bahrain-based Bank ABC, join forces to offer financial services in the local capital markets, according to a securities filing late Wednesday (May 19).
Inter focuses more on financing for real estate projects while ABC Brasil specializes in infra bonds and private placements, the two banks said. Of note, between 2010 and 2019, real estate credit increased by almost 60% in Brazil, breaking an all-time record.
This year the outlook seems even better, with a projected R$160 (US$30.2) billion – almost R$40 million more than the amount financed in 2020.The drop in interest rates has favored this growth, according to The Rio Times. The rates, which stood at 11% in 2016 for this type of loan, have dropped to the current 6%.
“We see at ABC not only cultural, but also technical and channel similarities. With so many synergies, the creation of this partnership is natural, ”commented João Vitor Menin, President of Inter.
For his part, ABC President Sérgio Lulia Jacob stated:
“By acting together on the capital market, we can expand the range of solutions for our customers and at the same time expand the investment alternatives for Banco Inter customers. This will benefit customers of both institutions. ”
Banco Inter based in Belo Horizonte, Brazil’s sixth largest city is offering personal and institutional digital banking services, loans, real estate financing, exchange and investment services. With about 8 million customers, Inter received 900 complaints in the third quarter of last year, becoming the leader of complaints among the ten largest financial institutions in Brazil.
Most complaints address irregularities related to security, integrity, reliability, confidentiality or legitimacy of operations and services. The ranking, which underwent reformulations in the methodology, was released by the Central Bank of Brazil in January 2021.
Banco ABC Brasil started operations in 1989 and is based in São Paulo, with a presence in the states of Rio Grande do Sul, Santa Catarina, Paraná, Mato Grosso do Sul, Mato Grosso, Goaiás, Minas Gerais, Rio de Janeiro and the federal district, as well as a branch office in Cayman Islands.
It is controlled by Bank ABC (incorporated as Arab Banking Corporation B.S.C), an international bank listed on the Bahrain Bourse and owned by the central bank of Libya and the Kuwait Investment Authority, with activities in the Middle East, North Africa, Europe, the Americas and Asia.