Q: Where does Itaú Unibanco see growth going forward? Will it be in corporate or consumer segments, or a mixture of different segments?
A: We see opportunities, as well as challenges, in both the corporate and consumer segments. This is why we are absolutely focused on moving ahead full-speed with our cultural and digital transformation, which started several years ago and reached new levels in the past two years. This transformation will make us better equipped to provide our clients with new products.
One of the key pillars is to be able to serve our clients where, when and how they want to be served, which is a combination of physical and digital — something we call ‘phygital’. It gives our clients the freedom to choose how they want to interact with the bank, with both digital and physical channels offering the same convenience, products and quality of service.
Q: Brazil, like most countries around the world, is dealing with rising inflation and higher interest rates. Are these factors making lending more complicated?
A: The scenario is uncertain due to both country-specific and global issues, which should continue to pressure inflation on a global scale. Banks worldwide will need to show operational resilience, and the scenario tends to favour established players that have been operating in the market for a longer time.
Itaú Unibanco has been around for almost 100 years, so we have been through several adverse cycles and are well prepared to support our clients in this one as well. Despite these headwinds, we should be able to deliver solid results this year, including a total loan portfolio growth in Brazil between 11.5% and 14.5% in 2022.
Q: Brazil’s banks have always been liquid, and liquidity increased during the pandemic. Has this jump had an impact on credit?
A: Itaú Unibanco has always been perceived as a safe haven for investors, especially in more adverse macroeconomic scenarios, and this continues to be true now. Having comfortable liquidity ratios allow us to put our balance sheet to use if and when we see opportunities to grow our credit portfolio sustainably and within our risk appetite.
Q: The final phase of the open banking law is underway. What is the impact of the legislation for the bank?
A: The scope of Brazilian open finance is broader than in other markets. It is still too early to properly assess its full impact, but we see it as a great opportunity to better understand and further expand our base of more than 70 million clients. We believe we have an unparalleled capacity for using the data we will acquire via open finance to generate business leads and better serve our clients.
Q: Brazil is a clear leader in digital payments and the World Economic Forum talks about an “explosion” of digital services in the country. Can you provide some examples of new digital products offered by Itaú Unibanco?
A: Brazilians tend to be early adopters of technology and it is no different with payments, which is what our clients most often use. Digital wallets are ubiquitous in the country and Itaú Unibanco has a commanding market share on the most relevant ones.
In 2020, the central bank created an instant payment solution called ‘PIX’. Clients can send and receive funds using a key that can be their email address, phone number or taxpayer ID number. This service is one of many that can be found in our app. Today, approximately 16% of all PIX access keys in Brazil are associated with Itaú Unibanco accounts.
Itaú Unibanco’s digital product, iti, started in 2019 as a digital wallet, and today is gradually becoming a fully digital, free-of-charge banking solution with more than 16 million clients.
Q: Keeping with the digital payment theme, fintechs have an important role in Brazil. What is the bank’s relationship with fintechs?
A: Itaú Unibanco’s DNA includes building long-lasting partnerships, either through acquisitions, joints ventures or commercial agreements. This is also true with tech companies. We have been speeding up this associative agenda over the past few years, leveraging the many tools in our toolbox, including Cubo, which is the largest innovation hub in Latin America and is run by Itaú.
Our goal is to further accelerate our digital and cultural transformation by acquiring new technologies, talent, products and distribution channels.
Q: Countries and individual banks have been adopting strategies and approaches to cryptocurrencies. What has the bank decided in terms of investments?
A: We have been experimenting with blockchain technology to record and distribute financial assets, known as tokenisation. Tokenised assets should drive better pricing, faster and cheaper transactions, more transparency and global accessibility.
At the moment, however, crypto assets are not directly available on our service portfolio. In our view, we still lack the robust regulatory environment that would allow for adequate compliance with our policies related to anti-money laundering and financial crime. We may revisit this decision as the regulatory environment evolves.
Itaú Unibanco Holding:
