In its efforts to grow into a full-service financial company, Nubank has come to the decision to buy broker Easynvest. Nubank Founder David Vélez said the Brazilian finance startup agreed to an arrangement that involved cash and shares, Reuters reported.
“Since its foundation, Nubank wanted to offer a full-service financial platform because we see much inefficiency in the banks,” Vélez told Reuters. The founder indicated that it is probable that the integration with the broker will take over one year.
As it stands, retail clients in Brazil are moving from certificates of deposits to equity trading in the country because of untraditionally low interest rates.
Nubank, for its part, is primarily renowned for its no-fee credit cards and has approximately 30 million customers. It finished a $300 million investment round in June with five of the firm’s current investors. Sequoia Capital, Tencent Holdings Ltd and DST Global are among its present backers.
The news comes as consumers following stay-at-home mandates are harnessing online banking platforms to assist them in supervising their finances while steering clear of public spaces such as bank offices.
Traditional financial institutions (FIs) are taking the cue to bolster their digital offerings, and they can learn about how to extend convenient services into virtual and mobile environments by following the experiences of their digital-only peers.
Vélez explained in a previous PYMNTS feature story how the bank makes safe and easy-to-access digital experiences as well as why COVID-19 is fueling even more dependence on debit payments.
In separate news, Brazil is reportedly aiming to roll out a central bank digital currency (CBDC) by 2022 to help digitize payments.
The president of the country’s central bank, Roberto Campos Neto, previously indicated that the nation’s cryptocurrency will work in conjunction with its new instant-payments system.
The instant-payments system of Brazil, called “Pix,” is scheduled for a broad launch in November.