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Cielo, the country's largest electronic payment media company with nearly half of the market, has suffered from the rapid growth of competitors in the industry, which has frightened investors.
One of Cielo's responses to heightened competition has been to start this year selling payment terminals carrying the BB and Bradesco flags in the branches of the banks themselves. . According to Bradesco executives, Cielo's current market prices do not accurately reflect the company's ability to generate value for its shareholders, as Bradesco has already sold 370,000 of these badets.
Nevertheless, the bank believes that it is better for Cielo to follow its status as a publicly traded company, in part because the capital that the bank would spend for a buyout can be used more efficiently to generate a return for shareholders.
One of them is to expand credit operations. at a time when the Brazilian economy is gaining ground. Bradesco expects the country's financial sector lending stock, both businesses and individuals, to grow around 10 percent by 2019.
The report also states that bank executives have revealed that Next, Arm of Bradesco's accounts, is expected to close 2018 with around 500,000 customers, while Digio, a fintech credit card competing with Nubank, is expected to reach 1 million accounts by early 2019.
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