Credit Suisse, a Switzerland-based bank, announced that it has signed an agreement with Banco Modal (modalmais), a digital bank in Brazil, to acquire preference shares amounting to 35% of the total capital of the bank.
Established in 2015, modalmais is considered to be one of the first entrants into digital banking in Brazil.
The bank serves a million customers, with nearly BRL10bn ($1.94bn) under custody and has also been recognised as the fastest growing platform in the country.
Modalmais’ banking platform offers access to more than 400 funds of nearly 140 managers with a total of 700 products available to investors.
It also offers banking services such as salary accounts, credit cards, foreign exchange, payments and leverage from financial assets held in custody.
The Brazilian digital bank will continue to be controlled by its founder Diniz Ferreira Baptista along with executives, including co-CEOs Cristiano Ayres and Eduardo Centola.
Credit Suisse international wealth management CEO Philipp Wehle said: “This announcement underlines our strong commitment to our Brazilian clients and our growth ambitions for this priority market.
“This transaction further enhances our ability to serve our clients digitally while getting access to additional client segments in a fast growing environment.”
Credit Suisse and modalmais to explore synergies
With both banks having complementary operations, they are working together to explore synergies between their investment services and products.
The synergies could include the Swiss bank gaining access to the advanced technology of the modalmais digital platform and all the functions and investment possibilities offered by a digital bank to provide improved service to its clients.
The possibilities also include distribution of certain Credit Suisse’s products such as structured notes, funds, debt transactions and share offerings on modalmais’s platform with nearly one million customers.
modalmais founding partner Diniz Ferreira Baptista said: “The agreement with Credit Suisse is the greatest stamp of approval that modalmais could achieve at this point in its trajectory.
“It is an honor to be associated with an institution whose history is intertwined with that of global financial markets. modalmais will continue its growth trajectory.
“Most importantly: the platform will be able to offer more solutions to its expanding client base with the experience and sophistication of Credit Suisse by its side.”
