Focused on Micro-Entrepreneurs, Banks and Fintechs Design Custom Accounts

RIO DE JANEIRO, BRAZIL – After years neglected by large banks, micro-entrepreneurs are experiencing a period of greater attention from financial institutions with tailor-made bank accounts for this group.

There are at least twelve options in the market, according to the survey conducted by Estadão PME, with growth driven mainly by digital banks — or fintechs, as the financial start-ups are known.

In the last two years alone, four current accounts for micro and small companies have been created, and another three are in their testing phase or should be established by the end of the year.

According to the Global Report, an annual report by the Global Entrepreneurship Monitor (GEM), 53 percent of all ventures in Brazil are MEIs (individual micro-entrepreneurs), which total 8.5 million in the country, according to Sebrae.

Founded in 2016, Neon fintech startup has operated as a digital bank for individuals since its foundation, but company accounts have become a recurring demand in recent years. Thus, in November 2018, the fintech launched the Neon Pejota account, with a focus on MEIs.

“We realized that many used our PF (“personal”) account for business because they had little room in the big banks, which focus more on large companies,” says Guilherme Rovai, head of product design at Neon.

According to him, after the release of Neon Pejota, several account holders switched into it. Due to its wide public acceptance, Rovai says that Neon is working on new services. “We will be providing investments through the account over the next few months.”

Attentive to this MEI demand, traditional institutions such as Bradesco and Banco do Brasil have turned towards this market. In April of this year, it was Santander’s turn. “We have more than 8 million micro-entrepreneurs established in the country and, therefore, we understand that the bank plays a key role in their development,” says Cássio Schmitt, director of Business & Companies at Santander Brazil.

Santander’s services range from a solution for receiving sales and consulting with a niche specialist manager to a portal offering free courses, educational content, and partners that could assist the MEI business.