On April 24th, 2018, the Brazilian National Monetary Council (CMN) approved Resolutions 4.656 and 4.657, which regulate the performance of financial technology companies (known as Fintechs) operating in the credit market.
According to Resolution 4.656/2018, Fintechs may operate within the following two frameworks:
- Direct Credit Society, or SCD (Sociedade de Crédito Direto), through which Fintechs can lend money raised through investment funds, eliminating the bank as an intermediary; or
- Person-to-Person Credit Society, or SEP (Sociedade de Empréstimo entre Pessoas), which allows for peer-to-peer lending operations within the established limit of R$15.000 per CPF (individual) or CNPJ (organizations).
In September of 2017, the Brazilian Central Bank had opened a request for comments on the subject (BC Public Consultation 55/2017). The new regulation is part of its + Agenda – the Bank’s strategy to increase competition in the National Financial System, foster credit offer, reducing the cost for the final borrower and increase legal certainty to operations.
Folha de São Paulo. Fintechs poderão concede crédito sem mediação de banco. May, 2018.
InternetLab. Banco Central regulamenta atuação de startups de tecnologia no mercado de crédito. April, 2018.
Banco Central. BC coloca em consulta pública atuação de Fintechs no mercado de crédito. September, 2017.