Credit Granting by Fintechs Grows 52%; Payroll Loans Among the Most Contracted

In 2023, fintechs recorded a 52% increase in credit granting, reaching R$ 21.1 billion, according to research by PwC and the Brazilian Association of Digital Credit (ABCD). After a period of slowdown in 2022, driven by rising interest rates, these startups have resumed their expansion, now serving 53.6 million customers. Below, we present the factors driving this growth.

Growth of Credit Fintechs

Fintechs, or financial technology companies, use innovations to offer financial services more efficiently and accessibly. An example is Konsi, which uses technology to facilitate access to payroll loans at lower prices. The study indicates that credit fintechs are establishing themselves in the market.

Currently, 25% of these companies have more than 300 employees, and the percentage of fintechs with revenue or investments exceeding R$ 20 million has risen to 58%. Furthermore, nearly half (46%) of fintechs already have a license from the Central Bank to operate as Direct Credit Companies (SCD) or Peer-to-Peer Lending Companies (SEP), a considerable increase compared to the 11% recorded in 2019.

Payroll Loans Among the Most Contracted Modalities

Among the products offered by fintechs, payroll loans stand out as one of the most popular. The main credit modalities for individuals are:

- Unsecured personal credit: 48%

- Private payroll loans: 25%

- Revolving credit card: 18%

- Installment credit card: 18%

- Acquisition of other goods: 18%

The default rate decreased in five of the six categories analyzed, except for revolving credit, which increased from 9% in 2022 to 23% in 2023. According to Marcondes, an industry specialist, this change is related to the maturity and size of fintech portfolios.

Geographic Diversification of Clients

The research also revealed greater geographic diversification among fintech clients in 2023. Of the 53.6 million users, 46.7 million are in Brazil and 6.8 million abroad. Although 74% of fintechs are located in São Paulo, there has been a significant increase in clients from other regions, such as the Northeast, which now houses over 17.5 million people.

Fintechs continue to expand and innovate in credit granting, especially concerning payroll loans, demonstrating a market in constant evolution and adaptation to consumer needs.