Brazilian state-owned bank Caixa Econômica Federal (Caixa) is reportedly planning to launch an initial public offering (IPO) of its digital banking arm in the US.
The lender will launch the IPO for the newly created digital arm Caixa Tem in the US by next year, Reuters reported.
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In an interview, Caixa Economica Federal CEO Pedro Guimaraes confirmed the development.
Brazil’s economy minister Paulo Guedes, last week, had first introduced the government’s plan to list the digital banking subsidiary.
Caixa Tem has nearly 70 million clients. Most of the clients were onboarded this year as part of the government’s move to pay emergency payments to Brazil’s poorest via the state-owned bank.
Guimaraes has predicted that the lender will retain at least 40 million people as clients, the Reuters report added.
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By GlobalDataGuimaraes added that the digital bank will soon provide clients with access to services such as micro-lending, insurance and faster payments.
He further revealed that Caixa is planning to sell a 15% stake in the bank.
Caixa launched the financial app Caixa Tem in October last year, with a focus on serving over 35 million low-income clients and beneficiaries of social programmes.
The app was developed to promote financial inclusion and expand access to Caixa services for low-income individuals.
