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Interview with Inter CEO: Insights into the Super App’s Success

PYMTS | Aug 26, 2022

Inter CEO Joao Vitor Menin - Interview with Inter CEO: Insights into the Super App’s Success

João Vitor Menin, CEO of Inter & Co., told PYMNTS’ Karen Webster:

“We’re building something here — and we’re building something big.”

  • Building something big, and gaining scale, requires looking beyond the confines of quarterly earnings reports and share price gyrations. (short-term concerns can dominate a publicly-listed firm’s thinking).
  • The super app should be an agnostic platform that offers something for everyone, young and old, regardless of income or age. As for the growth, Inter’s second quarter results showed that clients grew by 73% year over year to 20.7 million. Revenues surged by 130%, and monthly average revenues per customer were up 16%.  Investors were cheered by the quarterly showing, where growth was accompanied by an expansion of net interest margins, sending the share price up by more than 30% on the Nasdaq in the 10 days since the Aug. 15th announcement.

See:  Rise of the super app

  • The money is there to fund growth, as is a diversification of revenue streams, as Inter right now gets half of its top line from the “spread” on lending products, while the other half comes from fee income. “Unlike the other banks in Brazil, we have everything in one single app, one that is convenient, and that has a good value proposition,” said Menin, “and a good UX.”

Toward the U.S.

  • The go-to-market strategy in the States starts with the bank, via deposits and money mobility, and bill payments, while credit will come later as Inter begins to lend off of a strong balance sheet and recurring maintenance revenues.
    • He noted a different approach than had been seen in Brazil, where the company started with a credit portfolio that in turn led to fashioning a digital retail banking franchise.

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  • We want to be the bridge for all Brazilians who want to do business in the U.S.,” he said.  Immigrant populations, he noted, tend to use these services often and prove to be loyal customers on the platform.  Over time, the deposit account can help the underserved migrant populations build credit histories (and help position Inter strategically against neobanks and FinTechs in the space).

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