Almost every bank in Latin America is blowing the horn of sharp growth in digital accounts – and sharing updated performance indicators such as Arpac (average revenue per active client) and CAC (customer acquisition costs). But Brazil’s BTG Pactual is seemingly swimming against the tide by remaining tight-lipped about the growth in its digital retail banking business.
Marcelo Flora heads the digital platforms division at BTG, which includes retail bank accounts and other personal banking products, such as credit cards and loans. The group reports within a broader wealth management and personal banking division.
The numbers suggest that retail banking growth could be strong, with revenues reaching R$879.1 million ($170.6 million) – up 26.7% year on year.
However, the group also reports a year-on-year increase in wealth under management of 31% in the first quarter of 2024. Net new money hit R$43.6 billion in the quarter, but the level of momentum of the retail bank is difficult to ascertain.
Competition
BTG’s competitors in the affluent and super-affluent sectors increasingly focus on developing primary relationships, and so there are questions about how successful BTG’s strategy in reverse engineering its investor clients into banking clients has been.
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