MICROCAPITAL BRIEF: Fintech Creditas of Brazil Buys Banking License from Andbank Brasil for $100m

The Brazil-based online lending firm Creditas recently acquired the banking license of Andorra Banc Agrícol Reig (Banco Andbank) Brasil, a member of the Andorra-based Andbank Group, for approximately BRL 500 million (USD 100 million). The deal allows Creditas to take deposits, thus expanding its product lineup in a way that will provide the firm with additional funding for its lending operations. Andbank Brasil will continue to offer private banking and asset management services, and the firm plans to purchase collateralized loans from Creditas.

Founded in 2012, Creditas is a financial technology (fintech) firm that provides loans using vehicles, real estate and expected paychecks as collateral. Its car loans, for example, begin at BRL 5,000 (USD 980), with an interest rate of 1.5 percent per month. In March 2022, the firm reported managing a portfolio of BRL 3.2 billion (USD 620 million).

Andbank Brasil employs approximately 120 people and has offices in the cities of Porto Alegre, Rio de Janeiro and Sao Paulo. The firm, which began operations in 2011, has approximately BRL 8 billion (USD 1.6 billion) in assets under management as of 2022.

Andbank Group, founded in 1930, is a private banking group that serves seven countries in Europe and Latin America plus Israel. As of December 2021, it manages assets valued at EUR 5.7 billion (USD 5.8 billion).

By Ben Greissman, Research Associate

Sources and Additional Resources

Creditas press release
https://ir.creditas.com/ir/press-releases/andbank-and-creditas-sign-strategic-partnership-in-brazil

Creditas homepage
https://www.creditas.com

Creditas financial information
https://ir.creditas.com/ir/financial-information/creditas-financial-results-q4-2021

Andbank Brazil description
https://www.andbank.com/brasil/

Andbank Group homepage
https://www.andbank.com

Andbank Group annual report
https://www.andbank.com/en/about-us/publications/

Previous MicroCapital article on Creditas
https://www.microcapital.org/microcapital-brief-e-lending-company-creditas-of-brazil-raises-225m-in-equity-eyeing-expansion-to-mexico/

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