Itaú Unibanco Seizes Top Spot in Brazil’s Primary Foreign Exchange Market
Itaú Unibanco has claimed the leading position in Brazil’s primary foreign exchange market for 2024. The bank dethroned Citi after five years of dominance, according to data from the Central Bank of Brazil.
Itaú achieved a volume of $241.825 billion in imports, exports, and international transfers. Citi followed closely with $237.394 billion, while J.P. Morgan secured the third spot with $174.875 billion.
In the broader market, including interbank transactions, Santander led the rankings. The Spanish bank recorded a total volume of $672.751 billion. Itaú and J.P. Morgan followed with $617.998 billion and $413.896 billion, respectively.
Eric Altafim, Itaú’s director of corporate products and trading desks, attributes their success to several factors. The approval of the Foreign Exchange Framework in 2021 simplified regulations. This allowed Itaú to focus more on client relationships rather than specific operations.
Itaú leveraged artificial intelligence to enhance its operations. The bank implemented models to identify customer behavior and streamline document processing. These innovations improved transaction analysis and settlement processes.
The bank’s strong relationships with nearly 50,000 medium and large companies gave it an advantage in commercial foreign exchange. Itaú captured a 19.7% market share in this segment last year.
Itaú’s Leadership in Foreign Exchange
Itaú also invested heavily in customer experience across all segments. In commercial foreign exchange, their Net Promoter Score (NPS) increased by 10 points in 2024.
The bank has made significant strides in automation. Currently, 70% of Itaú‘s foreign exchange transactions are conducted electronically. Moreover, 44% of transactions are fully automated, requiring no human intervention.
Altafim expressed surprise at reaching the top position in 2024, as they had initially targeted 2025 for this achievement. The bank expects to maintain its leadership this year, barring exceptional circumstances.
However, Altafim acknowledges that improved economic conditions in Brazil could benefit foreign banks. These institutions typically have stronger positions in the financial foreign exchange segment.
Santander, maintaining its overall leadership for the 11th consecutive year, remains committed to innovation. Rafael Kapaz, partner and treasury director at Santander, emphasized their goal of connecting local and international markets efficiently.
This shift in market leadership reflects the dynamic nature of Brazil’s foreign exchange landscape. It underscores the importance of technological innovation and customer-centric approaches in gaining competitive advantage.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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