Brazilian Fintech Industry says “hello” to a brand-new competitor: the Fintech startup Cora.
Cora received authorization from the Central Bank to become a financial institution. This startup is a FinTech that offers financial services to small and medium-sized companies.
From now on, the startup starts operating as a Direct Credit Society (SCD) and should start offering new services to its clients.
Before authorization, fintech offered a simplified account with few resources. It will now be possible to pay bills and taxes, generate receipts, and make and receive transfers. The new license also allows fintech to offer credit to customers. In the coming months, the company plans to launch a credit and debit card.
The founder and CEO of Cora, Igor Senra, says “We are very pleased to be approved by the Central Bank. This gives a company that is still starting a very important credibility seal, mainly because SCD is the safest financial institution that exists, ”
The startup has already received investments from Kaszek and Ribbit funds.
Trying to disrupt credit-related products
In these days, many Fintechs that offer credit-related products for individual consumers as well as small and medium-sized enterprises (SMEs) are talking about how they will help their clients survive.
Generally, the relief they provide comes in the form of changes in your credit terms. Even when this approach is useful, it’s not disruptive.
Months ago, the Brazilian startup Cora added a new feature to its SME platform. Through this update, companies’ cash flow is given an additional boost as customers can prepay items digitally through the Fintech system.
Brazilian SMEs are struggling, Cora can help
According to the São Paulo Association of Bars and Restaurants, at the rate at which consumption is falling, 3 million jobs could be lost within the next forty days as the industry struggles to survive.
In another fifty or sixty days the number could rise to 4 million layoffs.
As the governments of Brazil, Mexico, Colombia, and virtually everywhere, strive to create a rescue plan to help these companies, startups are taking the initiative to offer alternatives.
That’s where fintech, Cora, comes into play.
Cora wants the cash flow of SMEs to continue flowing. Through Cora’s newest feature, people can buy restaurant vouchers before. Once it is safe to leave our homes, they can stop by and pick up my food.
Ultimately, it’s a prepaid service whereby individuals help these stores stay open by injecting them with cash now and consuming later.
If you happen to be in Brazil and you know a local store or restaurant that needs cash, you can recommend them here. It is certainly an innovative way to help businesses at no additional cost.