According to a new Goldman Sachs report, Brazil is experiencing a wave of growth in financial technology that will most likely eat into the market share of the country's huge and long untouchable banks.
The 45-page research report titled "Fintech Brazil's Moment," estimates that the over 200 financial technology companies in Brazil are to produce a potential revenue pool of about USD 24 billion in the next decade.
Hence, payments, lending and personal finance are three promising segments, as is insurance.
However, the impact from fintech disruption is expected to be greater in Brazil than in many other countries because of its highly concentrated banking sector, the report says.
"We believe the Brazilian financial system is particularly susceptible," wrote the report's authors, Carlos G. Macedo, Marcelo Cintra, Steven Goncalves and Nelson Catala.
Experts say that what they call "an oligopolistic market structure" in Brazil where the top five banks, excluding development banks, hold 84 percent of total loans. In retail branch banking, the top five banks have 90 percent of branches, or a rise from 71 percent in 2007.
Read more at CNBC.