iti, from Itaú, “goes on the assault” in accounts for small companies

iti, from Itaú, “goes on the assault” in accounts for small companies

The target of the platform are entrepreneurs with monthly revenue of up to 10 thousand reais

iti has started offering services to small entrepreneurs as Itaú Unibanco’s digital bank moves to compete more head-on with established rivals.

The target of the platform are entrepreneurs with monthly revenues of up to 10 thousand reais. As this audience often uses accounts for personal and business use, iti included the “My Business” function, eliminating the need to open another one.

The service includes options such as terminals to receive payments by debit and credit cards. All amounts received by the account owner, even for purchases in installments, are advanced by two days (D+2) by iti, with a monthly rate of 1.90% on debit and 4.49% on credit.

The initiative comes almost three years after the platform emerged as a digital wallet and gradually added digital banking functions and expanded efforts to gain scale. Today, its customer base is approximately 18 million people.

According to the director of iti Itaú, the Portuguese João Araújo, the movement responds to a request from the clients themselves, who often use individual accounts to transfer amounts from their own small businesses.

But the debut in this niche comes years after rivals such as Nubank, PicPay, inter and Mercado Pago, from Mercado Livre, have established themselves in this market, estimated at around 35 million people in the country.

For Araújo, by having Itaú’s structure to offer a more complete shelf of products, as in the acquisition of tight margins, in addition to greater experience in managing loans, iti should have lower customer acquisition costs and more chances of monetizing the business.

“We are going to go on the attack,” he added, echoing what Itaú Unibanco executives said last week during an annual meeting with investors, when commenting on changes underway to make the bank more competitive with digital banks.

The executive mentioned that, although it has a smaller base than the largest players in digital banks, iti has rapidly multiplied the recurrence of use of the platform, which increases the chances of monetizing the business.

That’s what rivals have been chasing at a time when rising interest rates around the world have driven venture capitalists to become more demanding of fast-growing technology businesses.

According to Araújo, the number of transactions by customers at iti more than doubled this year compared to 2021, while account values ​​also grew 10 times in the annual comparison.

The executive also said that the operation of more complex products, such as loans, is a very big challenge with small entrepreneurs, a niche that usually exhibits higher levels of default.

“We know that it is not trivial to give credit to this public”, said the executive.

Source: Reuters

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