November 24, 2022
  • November 24, 2022

JPMorgan-backed C6 digital bank to open branch network in Brazil

By on October 19, 2022 0

SÃO PAULO, Oct 19 (Reuters) – Brazilian lender C6 Bank is set to open its first five physical branches in the country in the coming weeks, an executive has revealed, heightening competition between the JPMorgan-backed digital bank and major retail lenders for high-income customers in Latin America’s largest economy.

C6’s head of high incomes, Felipe Wey, told Reuters on Tuesday that the bank’s goal for the coming months was to have at least one office in each of the country’s capitals and in other cities with a large number of potential wealthy clients.

He didn’t disclose an exact goal, but said “dozens of offices are expected to be open by the end of 2023.”

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The move comes about a month after C6, established in 2019, launched Carbon, a platform focused on the roughly 20 million account holders who earn more than 15,000 reais ($2,862.16) per month or so. more than 150,000 reais in investments.

It highlights how digital platforms with a leaner structure than large retail banks are gradually seeing opportunities to expand their customer base and do more business with current customers by owning physical branches.

C6’s face-to-face units will have around 10 staff each and are expected to increase customer engagement by offering a more detailed and personalized approach than its bigger rivals, said Wey, a former executive at Itau’s high-income brand. Unibanco (ITUB4.SA). Personality.

Similar units among Brazilian large-cap lenders include Banco Bradesco SA’s Prime (BBDC4.SA) and Banco Santander Brasil SA’s Van Gogh.

With the physical branch initiative, C6 aims to increase its share in the high-income market, which is expected to cover some 5 million people in the country.

The move also comes as digital financial services platforms seek to increase their revenue per customer at a time when investors are more skeptical of high-growth companies, given the high interest rate environment.

In 2021, the purchase of a 40% stake in C6 marked the debut of JPMorgan Chase & Co (JPM.N) in retail banking in Brazil. C6 was founded by former partners of Banco BTG Pactual SA, the largest independent investment bank in Latin America.

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Reporting by Aluisio Alves; Written by Gabriel Araujo; Editing by Josie Kao

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