Brazilian FinTech is taking over the niche left by SVB and growing in the market. Know who you are and what you do
When news arrived of the bankruptcy of Silicon Valley Bank (SVB), there was concern in Brazil that this could hurt some of the digital banks here. However, one fintech company saw a business opportunity in the space left by the US establishment.
a Funding tracking It is a Brazilian firm that specializes in foreign exchange operations for startups and was working on launching a global account at the end of April. With SVB bankrupt, the team has introduced the new service delivery method and they already have a waiting list.
According to the company’s CEO, Bernardo Brights, Trace already has 300 registered customers and more than $3 billion in waiting list. The idea is to offer more products over time and to keep the customers they won over the last few days.
SVB bankruptcy opens the way for Brazilian fintech
With the closure of SVB activities, those who had money in the bank could not carry out international transactions. That is, startups in Brazil cannot send money directly from there to here, so the search for financial institutions that can carry out this process began.
Traditional banks have a structure for that, however, the deadline to complete opening a global corporate account is 60 days. The fintech tracking system can open an account for companies with more than $500,000 in balance in up to three hours.
In this way, startups that choose the Brazilian company can access the amounts held in SVB. However, this is a solution aimed at startups that already have a financial structure outside the country. For example, a holding company in the Cayman Islands and a corporation in Delaware.
However, the end of plans for SVB Accelerated Trace for its global account, just because it’s released doesn’t mean it won’t get better. It is expected that several other banking services will be added to the system and a complete global account solution will be created.
Photo: Nadezhda Kharitonova / shutterstock.com – Editing: Your digital credit
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