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Brazil’s Itau lures 10 million clients to its digital bank By Reuters

by Mike Robinson

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© Reuters. Itau’s logo is visible in Vina del Mar branch, Chile on July 30, 2019. REUTERS/Rodrigo Garrido/Files

By Aluisio Alves

SAO PAULO (Reuters – Brazil’s most prominent lender Itau Unibanco Holding SA enticed 10 million customers to its digital bank Iti. The bank’s client base has tripled since January, a bank executive claimed in an interview.

Itau’s drive to win clients is a result of fintechs such Berkshire Hathaway’s (NYSE:) Inc-backed Nubank or General Atlantic’s Neon adding millions more clients from traditional banks and the unbanked.

Joao, Itau’s director, stated that the company has chosen clients from regions in which Itau has less customers such as Brazil’s North or Northeast.

Araujo stated, in reference to competition with newcomers: “We’re perfectly at the game.”

This digital bank has around 3 million customers as of January 1, and is especially targeted at those in lower income brackets. Traditional lenders in Brazil have shunned them, with a total population of 213.7 millions.

Itau has approximately 80% of its clients who are brand new to iti, which indicates that digital banks do not threaten the bank’s existing clientele. Over half of its customers are below 30.

Iti introduced a free physical credit card, which was offered in Brazil by all the neobanks.

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