Central
Bank resolution n. 4.656/2018 has created a new kind of financial company in
Brazil, called interpersonal lending company, specialized in intermediating loans
exclusively through electronic platforms.
This has
been reported as the legalization of peer to peer loans in Brazil. Which it is.
But not exactly.
The new
rules will certainly open new markets for technology in the Brazilian financial
system and, hopefully, will bring much needed competition to the banking
environment.
However,
the new P2P lending companies are still subject to previous approval by the
Brazilian Central Bank.
What are the new P2P Loan companies and what is
in it for the Fintechs?
The interpersonal lending company (“sociedade de empréstimo
entre pessoas” or SEP):
a) Are a financial institution,
regulated by the Brazilian Central Bank (so, not a website run from a garage);
b) Must have at least 1 million reais
(about 290K USD) in equity;
c) Are to be specialized in intermediating
loans between users of an online platform (the users could be individuals or
companies);
d) Can only do business through the
online platform;
e) Must have systems in place to
provide:
e.1)
Accurate credit ratings;
e.2 Management and recording of the
contracts, including confirmation of signatures, confirmation of terms, etc.
Items D and
E are the cause of the buzz.
The fact
that the loans can only take place through electronic platforms is already
forcing the players in the market to adopt software solutions that will allow them
to attract and process the transactions in a safe and expedite manner.
Moreover,
tools for credit rating and document processing will likely have to be added to
the system.
There is a
lot of space for innovation in this regard. The Brazilian civil code is not
clear on the validity of electronic signatures and Brazilian jurisprudence on
the matter is evolving. A lot of companies are experimenting with the use of “selfies”
as signature, as well as other smart phone applications.
Foreign
ownership of these P2P lending companies will be subject to special approval by
the Brazilian Central Bank, following the lines of the special approval needed
for foreign banks to operate in Brazil. Because of that, my bet is that foreign
investors will celebrate Joint-Venture agreements with the SEP companies, in
order to provide technology and maybe a trademark, while not holding equity in
the operation
Tech companies interested in the subject are encouraged to check my post: Selling software and services to Brazil.
I was diagnosed 2 years ago at age 63. Symptoms were tremor in right leg, loss of handwriting ability, and soft voice. I also have difficulty rising from a seated position and have balance issues. I started out taking only Azilect, then Mirapex, and 6 months ago Sinemet. Several months ago I started falling frequently, hence the reason for Sinemet. I tried every shots available but nothing worked. In June 2018, my neurologist and I decided to go with natural treatment and was introduced to Natural Herbal Gardens natural organic Parkinson’s Herbal formula, i had a total decline of symptoms with this treatment, the Tremor, falling frequently, stiffness, body weakness, balance issues, depression and others has subsided. Visit Natural Herbal Gardens official email: greatogudugu@gmail.com . This treatment is a breakthrough for all suffering from Parkinson’s, don’t give up Hope. Keep Sharing the Awareness, herbs are truly gift from God.
ResponderExcluir