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Brazil fintech Creditas applies to become financial institution

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Brazil fintech Creditas applies to become financial institution

Financial technology firm Creditas Soluções Financeiras Ltda. has applied with the Banco Central do Brasil to become a financial institution, Diário Comércio Indústria e Serviços reported.

The request is the first since the central bank began regulating credit fintechs in April. That regulation enabled fintechs to operate without an intermediary, either as a direct credit cooperation, a personal lending company, or a firm operating with its own resources.

With the registration, the Brazilian digital lender will seek independence in its operation of products and services while maintaining lower costs, said Sergio Furio, the firm's founder and president.

Specifically, the company is looking to offer a secured credit line that is cheaper than those provided by banks, Furio added.

Creditas Soluções Financeiras expects to disburse about 340 million reais this year, making it the largest secured loan provider in Latin America, Furio said.

In December, the company closed a new round of capital contributions that reached 165 million reais, the largest investment received by a local fintech that year.

As of May 25, US$1 was equivalent to 3.66 Brazilian reais.