J.P. Morgan will take a 40 percent ownership stake in digital bank C6 Bank, according to a press release.
C6 Bank provides a full suite of products including things like multi-currency checking and savings accounts, debit and credit cards, travel and loyalty programs, investment and lending products and more things like small to midsize business banking.
The release notes the size of the Brazilian retail market, which has seen new levels of digital adoption as the country has seen regulatory reform and modernizing of infrastructure. Now, over 60 percent of Brazilian bank transactions are done in digital manners. That statistic, the release notes, has been increasing in recent years.
“We’re excited to be partnering with one of Brazil’s fastest growing digital banks,” said Sanoke Viswanathan, CEO of International Consumer for J.P. Morgan Chase. “We’ve admired C6 Bank, its management team and their strategy for some time. With an impressive platform and product suite, they are well-positioned to sustain their growth trajectory and build a strong franchise. We look forward to supporting C6 Bank in its aspiration to be a long-term winner in the Brazilian banking market.”
“It’s inspiring to bring our global capabilities and expertise to support a Brazilian digital bank as it takes its next leap forward,” said Daniel Darahem, Senior Country Officer of Brazil for J.P. Morgan Chase. “We’re also pleased to be supporting the country’s efforts to advance and transform the consumer banking market.”
Customers don’t really look at physical bank branches as the primary deciding factor for banking choices, PYMNTS writes.
A recent report found that things like FinTechs, neobanks and mobile banking providers are adding new types of user experiences that weren’t available before.
That includes new types of savings apps and apps that offer services for teens to get into banking easier, along with personal loan platforms that build into mobile banking and other such things.