Building A Better Bank In Brazil

What would it mean to be the first bank for gig workers in Latin America? Beyond the opportunity to fill a critical need for millions of customers in rapidly expanding markets, how much impact could you have on people’s lives? André Bernardes plans to find out.Bernardes and his co-founders, former Square lead software engineer Ludmila Pontremolez and fellow MIT Sloan alumnus Bruno Lucas, have launched Zippi, a provider of loans and financial services for independent ride service drivers in Brazil.

The trio estimate there are three million people working in digital gig jobs in Brazil, up from nearly zero four years ago. These workers are able to earn much more on an hourly basis driving for Uber than working in traditional low-wage service roles, but by moving to a gig economy job, they can also lose their access to formal financial services. As soon as they have an accident or a health issue, they can quickly end up in deep financial distress.

Unlike traditional banks, which look for full-time conventional employment before providing a loan, Zippi bases its approval process on the driver’s revenue history. Drivers can apply through the company’s website and receive access to funds as quickly as the next day.

“No one is serving these workers,” says Bernardes. “There is a lack of suitable products and a lack of transparency.” With his background in financial services, Bernardes came to MIT because he “needed better tech DNA.” He then met Lucas, who shared a finance background and a drive to start a company, and Pontremolez, an expert technologist who worked in Silicon Valley. Now the three are at Y Combinator, one of the United States’ top startup accelerators, aiming to bring their newly launched business to its next stage. Zippi could eventually serve food delivery drivers, babysitters, hairdressers, and other gig workers across Latin America.

“If we fulfill our vision, we could give over 50 million people in Latin America’s informal economy the safety net they need that allows them to thrive,” Bernardes says.

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