This chapter shows the revolution that is happening in the financial system, having as main actor the technological companies—the fintechs—that don't have financial knowhow. The traditional banks didn't structure their business trying to attend the client's needs. The clients always suited themselves to banks' services. The fintechs are changing this reality by putting the client in another baseline, filling the gaps left by the banks, offering new services, and acting in places where banks have never gone before. The fintechs are offering these services with a lower price and more quality for the clients.
TopBrazilian Bank System
In Brazil, the predominant financial institutions are the multiple banks that operate in several segments of the financial market, collecting deposits / savings, and intermediating credit and financial security transactions (Freaza, Guedes and Gomes, 2008).
The profitability of Brazilian banks has grown in recent years, according to Arienti (2007). The author says that the degree of profitability - the proportion of net income to shareholders' equity - that measures the capacity to generate income for shareholders on invested capital has increased in the country, as can be seen in the table 1 below.
Table 1.
Percentage of profitability from Brazilian banks*
| Year | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 |
| Profitability | 14.4 | 11.9 | 12.3 | 8.5 | 16.3 | 23.0 | 19.2 | 19.2 | 27.0 | 14.7 |
*Author’s note: Banks selected until 1999 were América do Sul, Bandeirantes, BCN, Boavista, Bradesco, HSBC, Bamerindus, Itaú, Mercantil de São Paulo, Noroeste e Unibanco, after 2000 were Bradesco, Unibanco, Itaú, Safra, HSBC, Bank Boston, Citibank e ABN AMBRO.
Source: ARIENTI F. F. P. Reestruturação e consolidação do sistema bancário privado brasileiro, Ensaios FEE, Porto Alegre, v. 28, n. 2, p. 577-600, out. 2007.