New tool allow rural credit transfers up to $3.8 bn to fintechs

The Brazilian government, banks and startups that finance the agricultural sector are working to create a
mechanism to allow banks to transfer part of the money from mandatory funds, raised by demand deposits, to
fintechs so they can lend it to farmers. A demand deposit is money deposited into a bank account with funds that
can be withdrawn on demand at any time. The idea is for startups to create investment funds and sell shares to banks, which would pay according to the requirements of the rural credit program. The estimated amount to be transferred to fintechs is R$20 billion ($3.8 bn) per harvest.

Source: Valor International