Episode 012 - Alberto Gaidys, Chief Investment Officer & Founding Partner of Wright Capital Wealth Management & Pioneer in Brazilian Fintech; São Paulo, Brasil

Episode Overview:

• My guest today, Alberto Gaidys is a Brazil Fintech Pioneer. He was involved in creating some of the first Fintech companies in Brazil, even before it was called "fintech." Settle in for a highly informative and detailed look at Brazilian Financial markets and Brazilian Fintech.
• Alberto takes you on a remarkably interesting journey through the creation of the first fintech companies in Brazil in which he was directly responsible with building.
• Some of the companies you will hear about include: Grana AQUI, Brazilian Mortgages, BankFacil, and Creditas, among others.
• In this Episode, Alberto provides an in-depth, well-informed analyses of credit and capital markets in Brazil along with incredibly interesting first-hand accounts of the beginnings of Fintech in Brazil.

Introduction

• Welcome to Distilling Venture Capital. I am your host, Bill Griesinger;

Distilling VC is a visionary podcast that provides an insightful and informed view of the key trends affecting the VC and tech startup world. My mission is to cut through and go beyond the hype that tends to dominate the tech and VC landscape. And provide you with information you can use.

• Welcome back everyone. It is great to be back with you in 2021 providing you with the quality content you´ve come to expect and rely on at DVC.
• Today's Episode is another in my Focus-on-Fintech Series where I provide you with a close-up look into the top companies in the Financial Technology sector that are bringing new innovations to financial services markets globally;
• I am super excited about today´s show because, while it is in the Fintech theme common to this podcast, it will have a bit of twist. We will focus on Brasil Fintech and dig into characteristics of Brasil Capital, Credit and Financial markets as it relates to Fintech in Brasil.
• My excitement is because my guest today is not only very knowledgeable regarding Fintech in Brasil, and brings a unique perspective on the role of capital markets in scaling Brasil Fintech; but he happens to be one of the leading experts on Brazil´s Capital Markets, Credit Markets and the Brazilian financial system.
• It is my pleasure to welcome to the program Alberto Gaidys. Alberto, thank you very much for making the time to join me today…
• I was going to detail some of your impressive credentials, but I think it´s better for me to allow you to tell us a about your background and expertise and then we can move into our topic.
• So, Brasil is reported to have over 400 Fintech companies in operation.
• One of the most recognized names on the list is Nubank, which just raised another $400MM round in its Series G and has raised more than $1.8B since 2013. It claims to be the largest digital bank in the world, starting with a simple no-fee credit card offering.
• It has grown its customer base from 12 million to 34 million, freeing millions in one of the most concentrated banking environments in the world. The new funding will be used to expand in Colombia and Mexico.
• Alberto, you are an advisor on another successful Brazilian Fintech co., Creditas, a secured lender to consumers.
• Creditas has an interesting back-story as it relates to its stages of development as a Fintech in Brasil…can you tell us how this company evolved to its current model and your role…?
• • The Grana AQUI story: (Acquired by Creditas)
  • • "Too early in the game when cap. markets buzz was not as strong…"
    • Banco Central even looked at this co. with suspicion of its P2P lending model…expand on this…

• Your perspective and thesis related to all of this Fintech activity and assessment of the Fintech landscape in Brasil:
• • Focus on disintermediation – a key objective of Fintech – related to evolution of capital markets to support it…
  • You have previously stated that without this evolution of capital markets instruments, "there would be no Fintechs out there…" can you expand on this?
  • Isn't it also true w/o the development of these Fintech apps., regulators would not have moved to address rules and regulations allowing cap. markets to evolve?
  • There is also the narrative that the high adoption of digital technologies by Brazilians (72% of population has a smartphone), and the huge entrepreneurial economy has led to a wave of Fintech innovation??

Closing Remarks:

Alberto, thank you very much for joining me today on the program…

It would be great to do a follow-up conversation if you are open to that – I would enjoy getting your input and perspective regarding continued of capital markets in Brasil and what it means for Brasil Fintech…

Thank you for joining me for this edition of DVC. I hope you found today's discussion with Alberto Gaidys interesting and it provided you with things to think about regarding Brasil Fintech and capital markets. Or, perhaps you are an investor fund looking to enter the Brasil market…

Stay tuned for my next Episode of DVC where I will highlight a London-based investment fund with a very unique geographical approach to deal flow and investments. Thank you for joining me today.