In an effort to increase profitability, Brazilian lender Creditas is raising $200 million and purchasing a bank and a mortgage startup, according to a press statement on Friday, July 8.
Creditas CEO Sergio Furio said in a Friday interview with Reuters that his business, which manages an online platform for consumer loans, is buying Andbank’s Brazilian banking licence and intends to begin accepting deposits.
“Getting retail deposits as a new alternative for funding will improve our margins,” Furio said.
According to Reuters, Creditas had only ever funded itself through the financial markets up until this point. With its agreement with Andbank, the business will offer investors in the bank goods from its credit portfolio.
Andbank, a broker-dealer and asset management established in Andorra, will continue operating there. The bank is in charge of $30 billion. The $100 million transaction still requires approval from CADe, the nation’s antitrust watchdog, as well as the national bank of Brazil.
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