Credit fintechs: the benefits of regulation in Brazil

Abstract

The growth in the number of fintechs operating in the Brazilian financial market has significantly evolved in recent years due to technological advancements and innovation. However, issues related to the lack of regulation have been identified in some countries, highlighting the need for regulation. The study investigates the benefits of regulating credit fintechs in Brazil, driven by the Central Bank's Resolution BCB No. 4,656/18. Using questionnaires and interviews, the research reveals that the anticipated benefits were achieved, emphasizing technological innovation in the credit process and reduced bureaucracy. There is also potential for increased efficiency and competition in the market. The Resolution was considered a regulatory milestone in the credit sector, promoting significant advancements.