GMB - Could you comment on how Genial became a technology leader today and what real investment was made for this?
Delano Queiroz - Grupo Genial has been investing in its banking as a service (BaaS) since 2018, initially serving cryptocurrency clients and, as of 2020, companies in the betting sector also entered our scope.
We are pioneers in serving these audiences, investing in providing APIs (Application Programming Interfaces) for third parties, and since then, our transaction volume has been on the rise, and we had to keep up with this movement along with the technology team. In the last three years, we have invested over R$ 60 million in this cloud infrastructure.
You were already leaders in the crypto sector and, four years ago, you entered the betting sector. How was this incorporation, and what growth does it represent for the institution?
We entered the crypto segment in 2017 due to our expertise in the exchange desk. Thus, at the time, we developed BaaS APIs for cryptocurrency exchanges.
When the betting sector began to enter Brazil strongly, due to the legislation implemented by then-President Michel Temer in 2018, we saw that we had the perfect solution for companies processing betting payments, with APIs for Pix and other payment methods and the exchange desk. Thus, compared to competitors, we have the experience of knowing high-risk operations, tradition in BaaS, and focus on currency, offering everything in one place.
What kind of services for clients interested in investing in the betting and cryptocurrency market does the bank offer that makes it different and more advantageous compared to the competition?
As we entered the BaaS universe before competitors, we made more investments than others, so our API has no downtime, which is recognized by our clients.
The great advantage of Banco Genial is that we understand our clients' businesses. We are not testing with the crypto or betting sector so that if it works, we increase our operation. I personally like the betting segment and understand it. We participate in the market, understand it, and create specific improvements for these businesses. We are here to stay in the sports betting segment.
What are the strategic partnerships with the current EFXs (facilitators)?
With the arrival of regulation, we have closed strategic partnerships with national and international EFXs so that they continue as "software houses" for bets abroad, and Banco Genial acts as the operation's clearer.
Due to the new legislation, bets will have to have operations in Brazil, and with the partnership with EFXs, payments will be processed at Banco Genial with the help of the facilitators' software - which benefits the market as a whole.
How does Banco Genial assess the current scenario of the sports betting market in Brazil?
With the evolution of the law, everything becomes more regulated, which gives more security to our operations. Since 2020, we have used market best practices with facilitators and, consequently, with bets abroad, even without the proper rules. Now, with this government movement, the niche wins, and so do we, as bets will have to have national licenses and will be subject to local legislation, fostering the maturity of compliance practices.
How are you preparing to meet the growing demand for financial services related to the betting and cryptocurrency market?
In terms of technology, we are prepared due to our experience in processing betting payments via facilitators. With the coming of betting companies to Brazil, we will be able to offer more customized solutions for these clients, in addition to serving other areas of Banco Genial, such as mergers and acquisitions, customized reports, and related demands.
What are the main challenges and opportunities for investors wishing to enter the sports betting market? What are the recommended strategies for those seeking to diversify their portfolios with assets related to bets and cryptocurrencies?
It is important to note that we understand the iGaming market as an entertainment sector business operation. Therefore, the users of these companies are bettors, not investors. From a business perspective, regulation will allow family offices and institutional investors to invest in the segment by buying stakes in betting houses, and Banco Genial, with its expertise in M&A, will be able to contribute to these operations and connect these investors to the companies.
Genial is an investment platform that facilitates access to the financial market, offering the best products in the industry. With over 20 years of history and over 200 billion in assets under custody; it is a platform that believes in simplicity and ease when it comes to investing, so it is 100% digital.
Source: Exclusive GMB
