Brazilian retail company Via Varejo has launched a digital bank, called BanQi, in collaboration with American start-up Airbox.
The move, according to a report by Reuters, is aimed at targeting low-income customers.
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Via Varejo also intends to lure other clients struggling with conventional banking services due to poor credit score.
The Brazilian retailer first announced its plan to open a digital banking offering in September last year, when it teamed up with Airfox.
The app-based platform will operate as a digital wallet, with new features to be added in by January 2020.
Via Varejo plans to introduce savings account, insurance products and cashback offers to BanQi gradually, Reuters added citing undisclosed company officials.
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By GlobalDataAdditionally, BanQi will maintain a physical presence through 800 Casas Bahia stores. These centres will offer cash withdrawals, deposits, bill payments and other transactions.
Via Varejo CFO Felipe Negrao was quoted by the news agency as saying: “We expect the number of BanQi users to grow very rapidly and easily surpass some local competitors.”
The company did not provide details about investment made to launch this digital bank.
“The operation should hit at least a breakeven from the third year onwards,” Negrao added.
Currently, the app is available on Android platform, with the iPhone version is expected to launch later this year.
With the roll-out, BanQi joins Nubank and Banco Inter, which are already live in the Brazilian market.
