Published Jan 8, 2026
Why Funding Transfers Are Faster Through Private Fintechs Than Traditional Banks (BB, Itaú, Bradesco)
For potential foreign investors and those looking to relocate to Brazil, it’s essential to understand Brazil’s banking regulations and why Brazilian startups don’t want you wiring through legacy banks.
Recent trends in Brazilian banking and financial market regulation include improvements to rules that govern the foreign exchange market.
In this guide, we break down how this affects funding transfers in the Land of the Palm Trees, as well as the ways in which newer fintech options present efficiency, predictability, and a faster timeline to compliance.
For potential foreign investors and those looking to relocate to Brazil, it’s essential to understand Brazil’s banking regulations and why Brazilian startups don’t want you wiring through legacy banks.
Recent trends in Brazilian banking and financial market regulation include improvements to rules that govern the foreign exchange market.
In this guide, we break down how this affects funding transfers in the Land of the Palm Trees, as well as the ways in which newer fintech options present efficiency, predictability, and a faster timeline to compliance.
For potential foreign investors and those looking to relocate to Brazil, it’s essential to understand Brazil’s banking regulations and why Brazilian startups don’t want you wiring through legacy banks.
Recent trends in Brazilian banking and financial market regulation include improvements to rules that govern the foreign exchange market.
In this guide, we break down how this affects funding transfers in the Land of the Palm Trees, as well as the ways in which newer fintech options present efficiency, predictability, and a faster timeline to compliance.
Why Brazil’s Major Banks Take Longer
Brazil’s major banks, including Banco do Brasil (BB), Itaú Unibanco, Banco Bradesco, and Santander, are highly regulated and extremely conservative when it comes to foreign inflows.
They often delay foreign investment wires for several reasons:
When doing risk assessment, these banks tend to perform deeper manual AML checks and identity verifications.
They need time to validate the receiving company’s classification.
They may ask for additional documents during the process.
They may route funds through slower FX desks.
They may manually reconcile incoming USD against pre-approved FX contracts.
Why Private Fintechs Are Faster
On the other hand, private fintechs offer up a faster alternative for foreign investors dipping their toes into the Brazil startup scene, as well as individuals like digital nomads who are increasingly calling Brazil home.
Some of these institutions, including Remessa Online, Banco BS2, Inter&Co, and C6, are faster because they entail:
Automated compliance systems (Brazil’s RegTech market is predicted to have a growth rate of 17.95% from 2025-2033)
Digital onboarding
API-based FX settlement (also reducing the likelihood of surprise fees)
Simplified document requests
Pre-approved remittance frameworks
Faster release of funds to the destination account
Remessa Online facilitates cross-border transfers with competitive fees and commercial exchange rates, for both businesses and individuals. BS2, known as an "Internet-first bank" or neobank, aims to use fintech to support a comprehensive financial ecosystem for both individuals and businesses.
Furthermore, Brazil’s C6 banking option, which provides full services through one streamlined app, has seen significant recent growth among customers, as well as a large JPMorgan investment.
Why Brazil’s Major Banks Take Longer
Brazil’s major banks, including Banco do Brasil (BB), Itaú Unibanco, Banco Bradesco, and Santander, are highly regulated and extremely conservative when it comes to foreign inflows.
They often delay foreign investment wires for several reasons:
When doing risk assessment, these banks tend to perform deeper manual AML checks and identity verifications.
They need time to validate the receiving company’s classification.
They may ask for additional documents during the process.
They may route funds through slower FX desks.
They may manually reconcile incoming USD against pre-approved FX contracts.
Why Private Fintechs Are Faster
On the other hand, private fintechs offer up a faster alternative for foreign investors dipping their toes into the Brazil startup scene, as well as individuals like digital nomads who are increasingly calling Brazil home.
Some of these institutions, including Remessa Online, Banco BS2, Inter&Co, and C6, are faster because they entail:
Automated compliance systems (Brazil’s RegTech market is predicted to have a growth rate of 17.95% from 2025-2033)
Digital onboarding
API-based FX settlement (also reducing the likelihood of surprise fees)
Simplified document requests
Pre-approved remittance frameworks
Faster release of funds to the destination account
Remessa Online facilitates cross-border transfers with competitive fees and commercial exchange rates, for both businesses and individuals. BS2, known as an "Internet-first bank" or neobank, aims to use fintech to support a comprehensive financial ecosystem for both individuals and businesses.
Furthermore, Brazil’s C6 banking option, which provides full services through one streamlined app, has seen significant recent growth among customers, as well as a large JPMorgan investment.
Why Brazil’s Major Banks Take Longer
Brazil’s major banks, including Banco do Brasil (BB), Itaú Unibanco, Banco Bradesco, and Santander, are highly regulated and extremely conservative when it comes to foreign inflows.
They often delay foreign investment wires for several reasons:
When doing risk assessment, these banks tend to perform deeper manual AML checks and identity verifications.
They need time to validate the receiving company’s classification.
They may ask for additional documents during the process.
They may route funds through slower FX desks.
They may manually reconcile incoming USD against pre-approved FX contracts.
Why Private Fintechs Are Faster
On the other hand, private fintechs offer up a faster alternative for foreign investors dipping their toes into the Brazil startup scene, as well as individuals like digital nomads who are increasingly calling Brazil home.
Some of these institutions, including Remessa Online, Banco BS2, Inter&Co, and C6, are faster because they entail:
Automated compliance systems (Brazil’s RegTech market is predicted to have a growth rate of 17.95% from 2025-2033)
Digital onboarding
API-based FX settlement (also reducing the likelihood of surprise fees)
Simplified document requests
Pre-approved remittance frameworks
Faster release of funds to the destination account
Remessa Online facilitates cross-border transfers with competitive fees and commercial exchange rates, for both businesses and individuals. BS2, known as an "Internet-first bank" or neobank, aims to use fintech to support a comprehensive financial ecosystem for both individuals and businesses.
Furthermore, Brazil’s C6 banking option, which provides full services through one streamlined app, has seen significant recent growth among customers, as well as a large JPMorgan investment.
A Closer Look: The Realistic Timeline Difference
Traditional banks in Brazil typically take several business days to process foreign funds transfers. And with larger funds transfers, strict regulations can lead to even longer delays.
On the other hand, private fintechs attractively offer roughly 48-hour transfer windows (sometimes as fast as same-day).
Why Brazilian Startups Prefer Fintech Rails
There are clear reasons why Brazil’s startup businesses prefer fintech. In a nutshell, though, the predictable processing times, lower FX spreads, faster RDE-IED registration (investment recognized sooner), and less operational friction for accountants are highly attractive characteristics when performing banking tasks in the startup scene.
Additionally, for U.S. investors, using fintech channels usually means faster equity recognition and faster compliance clearance. It's more intuitive, cutting down on potential barriers that foreigners face when sending money across borders.
A Closer Look: The Realistic Timeline Difference
Traditional banks in Brazil typically take several business days to process foreign funds transfers. And with larger funds transfers, strict regulations can lead to even longer delays.
On the other hand, private fintechs attractively offer roughly 48-hour transfer windows (sometimes as fast as same-day).
Why Brazilian Startups Prefer Fintech Rails
There are clear reasons why Brazil’s startup businesses prefer fintech. In a nutshell, though, the predictable processing times, lower FX spreads, faster RDE-IED registration (investment recognized sooner), and less operational friction for accountants are highly attractive characteristics when performing banking tasks in the startup scene.
Additionally, for U.S. investors, using fintech channels usually means faster equity recognition and faster compliance clearance. It's more intuitive, cutting down on potential barriers that foreigners face when sending money across borders.
A Closer Look: The Realistic Timeline Difference
Traditional banks in Brazil typically take several business days to process foreign funds transfers. And with larger funds transfers, strict regulations can lead to even longer delays.
On the other hand, private fintechs attractively offer roughly 48-hour transfer windows (sometimes as fast as same-day).
Why Brazilian Startups Prefer Fintech Rails
There are clear reasons why Brazil’s startup businesses prefer fintech. In a nutshell, though, the predictable processing times, lower FX spreads, faster RDE-IED registration (investment recognized sooner), and less operational friction for accountants are highly attractive characteristics when performing banking tasks in the startup scene.
Additionally, for U.S. investors, using fintech channels usually means faster equity recognition and faster compliance clearance. It's more intuitive, cutting down on potential barriers that foreigners face when sending money across borders.
Summary
Brazil’s embrace of fintech innovations comes at a time when foreign investors have a chance to step into the country’s thriving startup hubs, from São Paulo to Belo Horizonte and beyond.
More and more, startup initiatives in Brazil are preferring private fintech banking over the country’s incumbent banks in the name of speed, efficiency, and ease of service.
For those interested in diversifying through Brazil, StartBrazil helps to facilitate the process, whether you’re interested in an investor visa pathway or you live a digital nomad lifestyle and are curious about Brazil’s future-focused outlook.
Summary
Brazil’s embrace of fintech innovations comes at a time when foreign investors have a chance to step into the country’s thriving startup hubs, from São Paulo to Belo Horizonte and beyond.
More and more, startup initiatives in Brazil are preferring private fintech banking over the country’s incumbent banks in the name of speed, efficiency, and ease of service.
For those interested in diversifying through Brazil, StartBrazil helps to facilitate the process, whether you’re interested in an investor visa pathway or you live a digital nomad lifestyle and are curious about Brazil’s future-focused outlook.
Summary
Brazil’s embrace of fintech innovations comes at a time when foreign investors have a chance to step into the country’s thriving startup hubs, from São Paulo to Belo Horizonte and beyond.
More and more, startup initiatives in Brazil are preferring private fintech banking over the country’s incumbent banks in the name of speed, efficiency, and ease of service.
For those interested in diversifying through Brazil, StartBrazil helps to facilitate the process, whether you’re interested in an investor visa pathway or you live a digital nomad lifestyle and are curious about Brazil’s future-focused outlook.
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