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Banks disintermediation is the concept used to transmit financial transactions that do not pass by the bank or financial institution, i.e. it is not required any extra shares of these latter for the transaction is made.

In Brazil, where the cost of money is extremely high, loans are hard to come by, with absurd rates and endless deadlines, favors the appearance of “game changing” of various financial models. This bank disintermediation, as well as financial, can be illustrated by raising funds abroad, in debt security issuance and prepayment of receivables to supply chains.

But these operations are only those at the top of this new financial game. Here are some new ways of banking disintermediation that are revolutionizing the globe.

Bitcoin

The currency that is revolutionizing the world. It is a currency like any other (dollar, euro) with one BIG difference, it is a crypto currency, i.e. is a digital currency, not controlled by the Government, stock exchange or financial institutions. Not being tied to any government, does not suffer from inflation (and increasingly so in Brazil due to stock market speculation). You can make online transactions of these coins, making payments, and other financial operations, without this activity pass by banks, hence its disintermediation.

Digital Banks

While they still have to be governed by international rules of some patents as Visa and Master, now offer some innovations, especially as the mobile financial services. How are directly linked to traditional banks can not speak a full banking disintermediation, but there have been cases where not charge credit card maintenance fees (such as the Brazilian startup Nubank).

Crowdfunding

Is based on an economy where there is a crowdfunding, i.e. it is a way of raising finance for a project through a community that shares the same interests, without any intermediary, so absent from banking institutions. The platforms like Kickstarter promote projects of people with talents or aspirations, aimed at raising funds for its implementation. These funds are made by the very people who are on the platform. The expression of this system would be: small investments x large community = excellent projects.

Loan Peer to Peer (P2P Lending)

These loans can not be in the bank but in the people themselves. Loan sharks? No, nothing like that. There are already platforms that mediate the agents of operations such as Zopa and Lending Club. In times of crisis, those who have some money left invests in loans to people that earn you a higher rate of interest than savings accounts, and this without going through any financial institution! While it is advantageous for both the lending (higher than savings accounts interest rate), as to who asks to borrow (lower rate than personal loans), in Brazil there are still no signs of this market.

Supply chain financing

As the previous one, does not have bank interference. It’s not really a system of loans, but a way of equating payments and receivables of a particular company. Thereby Companies may have maturities of payments to suppliers (thus receiving the advance payment) – reverse factoring – quite advantageous for small and medium businesses. The Market Invoice is a good example of such a system.

55 million Brazilians do not have traditional bank account

bank-desintermediation
55 million Brazilians do not have traditional bank account (Photo: Forbes)

In Brazil we have found some evidence of this bank disintermediation. Here are some examples from the selection below:

  • Sem Parar – Company intended to Brazilian highways consists of being the payment intermediary, in parking of shopping centers, street parking and fueling station, which receive directly from Sem Parar, excluding banks of this negotiation.
  • Nubank – Although a partnership with MasterCard, it collects important data regarding the payment: consumption profile, default rates and purchase regularity. These data will be important in future financial disintermediation, making it a true digital bank.
  • Contro.ly – s an integrated application with a payment card that helps you make better use of your money! Is the new bank in Brazil.
sem parar
Sem Parar, excluding banks of this negotiation. (Photo: unknown)

As 55 million Brazilians do not have traditional bank account the markets for prepaid cards are a great investment to take into account, and the bank disintermediation can be the solution to the absence of so many bank branches as would be necessary.

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