Brazilian digital banking pioneer Banco Inter is charting a strategic path for 2024 that balances aggressive growth with a newfound focus on profitability and asset quality. After a period of rapid user acquisition, the lender is now pivoting toward deepening its relationship with its existing customer base through expanded credit offerings.

Strategic Expansion in Key Segments The bank’s leadership has identified specific areas where it intends to deploy capital more effectively. Rather than a “one-size-fits-all” approach, Inter is focusing on:

• Home Equity and Real Estate: Leveraging its expertise in collateralized lending to offer longer-term, lower-risk credit products.
• Credit Cards: Utilizing advanced data analytics to offer higher limits and specialized products to “prime” clients who demonstrate strong repayment histories.
• FGTS Lending: Continuing to tap into the “anticipation” of the Government Severance Indemnity Fund (FGTS), which provides a lower-risk entry point for consumer credit.

The “60-30-20” Vision The bank’s 2024 strategy is a critical component of its broader “60-30-20” plan—a goal to reach 60 million customers, a 30% efficiency ratio, and a 20% return on equity (ROE) by 2027. To hit these targets, Inter is shifting from being just a “digital wallet” to a primary banking relationship for its users, encouraging them to move their payroll and investments to the platform.

Managing Risk in a High-Interest Environment A central theme for Inter in the coming year is the “quality” of credit. While the bank aims to grow its portfolio, it is doing so against a backdrop of relatively high interest rates in Brazil. The strategy involves:

• Stricter Underwriting: Refining its AI-driven credit models to better predict defaults before they happen.
• Collateralized Loans: Increasing the share of the portfolio backed by assets (like property or vehicles) to reduce the impact of potential non-performance.
• Cross-Selling: Focusing on customers who already use multiple Inter services, as these users typically show higher loyalty and lower default rates.

Global Ambitions While the core of its credit growth remains in Brazil, Inter continues to integrate its “Global Account” features. By offering dollar-denominated services and international investment options, the bank aims to attract high-income users, further diversifying its revenue streams beyond traditional Brazilian consumer interest rates.