How Inter&Co is Changing the Digital Finance Landscape

When Inter&Co (Nasdaq: INTR), the financial super app, took on the challenge of transforming the digital financial landscape, the firm knew there would be some skepticism. According to Inter&Co CEO, Joao Vitor Menin, this came at first from investors and regulators, “How can a bank offer a free, full service and fully digital bank? Will this be a profitable business?” Fast forward to 2024, Inter&Co has proven that it is not only possible, but it is profitable and scalable. Their Q1 2024 earnings report shows record revenue, 8 times greater than the same quarter in 2023,  and the firm announced it serves more than 32 million clients with a 55% activation rate, or 17.4 million active clients, including  nearly 3 million accounts in the U.S.

This impressive feat didn’t happen overnight. When Inter&Co was founded in 1994 (the company was formally known as Banco Intermedium) its goal was to serve local customers in Latin America. The company was a digital pioneer when it introduced the first 100% digital checking account in Latin America, initially offered to Brazilians, and today, the company is known for its financial super app – banking, investments, and more all in one place. Listed on the Nasdaq exchange in June 2022, Inter&Co became the first ever Brazilian company to upgrade its primary listing from Brazil to the U.S. further cementing its borderless ambitions.

Another goal of Inter&Co is to continue incorporating new technology into its products and services for its customers. “Inter&Co has always been on the cutting edge of technology,” Menin says, “We started using cloud capabilities six, seven or eight years ago and now we’re going to leverage AI capabilities. We want to show how we’re prepared for this next phase in tech.” The financial services company showcased their latest tech innovations by hosting its first ever Tech Day, at Nasdaq MarketSite on May 13^th. The event brought together Wall Street executives, investors, and partners. During the event, the firm demonstrated how AI is being incorporated into the customer service experience, internal systems and in the day-to-day financial lives of its customers. The next chapter of innovation includes natural language interactions with Gen AI, more personalized experiences and continuing to be data driven company. 

Digital Banking, Revolutionized

Inter&Co saw that traditional banks were bureaucratic and couldn’t properly serve the financial needs of their customers. “We consider our clients underbanked, not unbanked. Our clients have bank accounts, but they pay too much and the banking services they pay for aren’t the best,” says Menin. That’s where Inter&Co stepped in with a solution to launch the first 100% digital checking account in Brazil in 2015. The accounts were free of fees and integrated into a comprehensive platform of other financial services. Inter&Co solved a pain point for underbanked clients and continued to think of new financial solutions for its users. 

Now, the firm offers a super app that is designed to make everyday activities simple and easy. Across multiple verticals – Banking & Spending, International Money Transfers, Credit, Shop & Commerce Plus, Invest, Mortgage and Insurance, Global Accounts, and Loyalty programs such as LOOP– the Inter&Co super app solves many customers’ daily needs all through one account, one login. For example, an Inter&Co customer can wake up and check their digital bank account, they can order food delivery for lunch, and they can end the day checking on their investments – all through the super app. As a pioneer financial super app in the Western world, Inter&Co is driving digital innovation. 

Looking Ahead

Inter&Co now has the opportunity to attract and grow its userbase in the U.S. “We see the same pain points for consumers everywhere, and we want to solve that problem for retail banking clients,” says Menin. Recently, the firm established a U.S. office in Miami in an asset light operation. To offer additional services and benefits to their clients, they secured the naming rights for Orlando’s soccer stadium – home to Orlando City of Major League Soccer (MLS) and Orlando Pride of the National Women’s Soccer League (NWSL), Inter&Co clients can exchange points to get tickets to attend games, experience concerts and more. All of this is in support of Inter&Co’s goal to reach 60 million customers by 2027 and to achieve an efficiency rate of 30% and a return on equity of 30% during the same period.  The company has been successful, its stock is up 175% in the last 12 months, beating analysts’ expectations. 

To learn more about Inter&Co, please visit their website.