Banco Inter, one of Brazil’s premier digital banking pioneers, has entered a new phase of its “60-30-20” strategy—an ambitious five-year plan to reach 60 million customers, a 30% efficiency ratio, and a 20% return on equity. As 2024 progresses, the bank is shifting its focus from simple user acquisition to the aggressive expansion of its interest-earning credit portfolio.
A Shift Toward High-Margin Lending
For years, Inter focused on building a “super app” ecosystem to attract millions of fee-free accounts. Now, the bank is pivoting to monetize that massive user base through credit. The 2024 roadmap emphasizes three primary pillars:
- Home Equity and Mortgages: Inter is leaning heavily into real estate-backed loans. These provide the bank with long-term, stable assets while offering customers lower interest rates compared to unsecured debt.
- Payroll Loans (Consignado): By targeting public servants and retirees—where payments are deducted directly from paychecks—Inter significantly lowers its risk of default (NPLs) while steadily growing its loan book.
- Credit Cards: The bank is using advanced data analytics to offer higher credit limits to its “power users,” specifically those who use the Inter ecosystem for shopping, investments, and insurance.
Leveraging the “Super App” Data
What sets Inter apart in its credit expansion is its “Points and Perks” ecosystem. By tracking how millions of users spend money within the Inter Shop and Global Account, the bank’s AI models can predict creditworthiness more accurately than traditional banks. This allows Inter to extend credit to customers who might be overlooked by legacy institutions, but who demonstrate healthy financial behavior within the app.
Balancing Growth with Risk
Management has signaled that while they are hungry for growth, they are not “growing at any cost.” The bank is keeping a watchful eye on Brazil’s macroeconomic indicators, particularly inflation and the Central Bank’s Selic rate. The goal for 2024 is to ensure that as the credit portfolio expands, the quality of the assets remains high, preventing a spike in delinquencies that could derail the bank’s profitability targets.
The Global Ambition
The credit expansion isn’t limited to Brazilian Reais. With the success of its “Global Account,” Inter is exploring ways to offer financial products to Brazilians living abroad or those looking for dollar-denominated credit. This international diversification is a key part of the bank’s identity as it trades on the Nasdaq, signaling to global investors that it is more than just a local digital wallet.
Conclusion
2024 marks a transition for Banco Inter from a high-growth fintech to a high-profit financial powerhouse. By doubling down on secured credit and leveraging its proprietary data, the bank aims to prove that its digital-first model can deliver the same—or better—returns than the traditional “Big Five” banks in Brazil.