Brazilian digital banking giant Nubank is entering the investment market through the acquisition of local platform Easynvest. Financial terms were not disclosed.
Launched just seven years ago, Nubank is already valued at more than $10 billion and is the sixth-largest financial institution in Brazil with around 30 million customers.
Now it is taking on the fast-growing Brazilian investment market thanks to the deal for Easynvest, which has 1.5 million users for its self-directed digital service.
Nubank is hoping that combination of its technology and Easynvest's expertise will help it tap into a lucrative area: according to a survey by McKinsey and Company, 93% of Brazilian investors are comfortable using digital channels and 61% feel comfortable making decisions on their own.
David Vélez, CEO, Nubank, says: "The current investments market in Brazil is filled with complex, expensive products and surrounded by conflicts of interest. The less income and financial education a customer has, the worse her investment options are.
"This creates an enormous opportunity to replicate Nubank's approach to bringing simplicity and efficiency to a complex market and using technology and customer focus to democratize access to great financial services products for everyone."