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Brazil’s Itau lures 10 mln clients to its digital bank

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SAO PAULO, Oct 13 (Reuters) – Brazil’s greatest lender Itau Unibanco Holding SA (ITUB4.SA) has lured 10 million shoppers to its digital bank iti, tripling its shopper base since January, a bank government stated in an interview on Wednesday.

Itau’s push to achieve clients comes as fintechs corresponding to Berkshire Hathaway Inc-backed (BRKa.N) Nubank and General Atlantic’s Neon have been including thousands and thousands of clients from conventional banks, in addition to the unbanked inhabitants.

iti’s director Joao Araujo stated it has focused clients in areas the place Itau has fewer prospects, corresponding to states in Brazil’s North and Northeast.

“We’re perfectly in the game,” stated Araujo, citing competitors with newcomers.

The digital bank, which had some 3 million prospects at first of the 12 months, is principally centered on folks in low revenue brackets who’re largely shunned by conventional lenders in Brazil, which has a inhabitants of 213.7 million folks.

Roughly 80% of iti’s clients are new to Itau, indicating that the digital bank is just not cannibalizing the lender’s clientele. More than half of iti’s shoppers are additionally under 30 years previous.

iti launched a bodily free-of-charge bank card in March, an merchandise provided by all neobanks in Brazil.

Reporting by Aluisio Alves; writing by Carolina Mandl; modifying by Philippa Fletcher

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