BTG Pactual provides digital platform progress report

Monday, April 10, 2017

Brazil's largest independent investment bank, BTG Pactual, launched the fourth and final stage of its digital investment platform, BTG Pactual Digital, in December.

Marcelo Flora, head of the new digital initiative and a partner at the bank, spoke with BNamericas about the platform's goals, the results seen so far and what it's offering clients.

BNamericas: You've said previously that BTG Pactual Digital will obtain 10% of the high-income retail market. Is that target still achievable?

Marcelo Flora: That is still our goal. We believe that we can be successful in this area, and we have been successful so far, despite being so new. We are very happy with our results so far and the levels we have reached, and we are very confident that this goal that we set a long time ago, to reach 10% of the high-income retail market, continues to remain viable. We believe that in a period of three or four years we'll be able to reach these results.

BNamericas: Have you heard any feedback from clients about the digital investment platform?

Marcelo Flora: Every month we send out a survey to clients about accounts opened the month before, and the results we've seen are very positive. When you compare them to the market average, they are much higher, showing that our clients have a high level of satisfaction.

BNamericas: How many clients does the platform have?

Marcelo Flora: We're not yet releasing that information for strategic reasons. What I can tell you is that, since we first launched [July 2016], every day we open more accounts than we did the day before. So this week we opened more accounts than we did the week before, and so on. We've grown a lot, not just in the number of accounts, but in relation to the velocity in which they are being opened. When it comes to the volume of investments, we haven't yet reached the ceiling in terms of the average volume of contributions, but we are currently at an all-time high. Every month, we see that contributions to these accounts increase, and the average increases.

We're also not yet releasing information on the total amount invested, but I can tell you that we have, in one day, received 39mn reais (US$12.4mn) to invest.

BNamericas: Do you plan on making available products for investors who are not in the high-income bracket?

Marcelo Flora: Our platform is actually already completely open without the need for a minimum investment. When a client opens an account, we don't know how much he or she will invest. So when a client opens an account, they can choose from products starting from 3,000 reais.

BNamericas: Will the BTG Pactual Digital platform offer products from other banks and issuers?

Marcelo Flora: They're already being offered now. We currently have six managers, aside from our own assets: Gávea [Investimentos], Adam [Capital], Mauá [Capital], Capital [Investimentos], Vintage [Investimentos] and XP [Investimentos] - we have funds from these managers that complement what we offer. We also selected a group of 10 or 12 banks, and we offer the bank issued bonds from these institutions to our clients on our platform.