Parabank is a digital challenger bank focused on improving financial access for people with disabilities in Brazil. Its founder, Gelson Junior, shares with Qorus' Boris Plantier what makes the bank unique and outlines the plan to grow while providing greater accessibility to its customers.
What is the standard profile of your target customer? What has been key to your customer acquisition success?
Our target audience covers a wide range of clients, but we focus particularly on people with disabilities who face challenges when trying to open digital accounts at other financial institutions. Parabank is being transformed to be accessible and inclusive, offering a personalized and simplified experience for everyone. This commitment to inclusion has been fundamental to our customer acquisition success. By ensuring that individuals overlooked by other banks now have access to comprehensive financial services tailored to their needs, we build trust and loyalty. Our solutions, which respect and value the unique needs of each customer, help set us apart in the market.
How do you convince people to use neobanks as their primary bank, where they keep the majority of their money and rely on for all their financial needs?
We convince people by offering accessibility, especially for those with disabilities who face difficulties at traditional banks, along with trust through transparency, specialized service and dedicated support. Our digital platform is practical and intuitive, allowing full financial control, with returns, easy credit access and financial planning – all in one place. We provide accessible and secure solutions for all financial needs.
While neobanks have shown impressive customer acquisition numbers, the transition to profitability has been more challenging. How do you make the leap to becoming profitable while maintaining user acquisition?
To achieve profitability without compromising growth, we invest in scalable technology to reduce costs and we offer financial products like investments and credit, which generate recurring revenue. We focus on customer retention by delivering high-quality, inclusive experiences, especially for people with disabilities. This increases retention and reduces customer acquisition costs. Additionally, strategic partnerships and revenue diversification help us balance growth and profitability, always prioritizing transparency and personalized service.
As a bank without branches, customers only interact with you digitally. How do you ensure an excellent customer service experience with 100% digital interactions? Are there certain advantages or challenges compared to traditional banks?
Yes, we offer a 100% digital service experience that prioritizes speed, accessibility and personalization. Our channels are available 24/7, so customers can solve issues quickly without leaving home. Here are some key advantages:
• Customers can access the bank anytime, without worrying about branch hours.
• Our platform is fully accessible, designed to meet the needs of people with disabilities, making their banking interactions easier.
• With intelligent automation, common questions are resolved quickly, while more complex issues are escalated to our specialized team.
• By eliminating physical branches, we can focus on improving digital service and reducing operational costs.
• To help those unfamiliar with digital banking, we provide guidance on platform security and usage, ensuring a reliable and secure experience.
What are your international expansion plans? Can you describe the regulatory or technical challenges to becoming a truly global neobank?
We plan to expand into other Latin American countries, such as Mexico, where the situation for people with disabilities is similar to that in Brazil. Our banking and technology infrastructure are ready to operate in these countries.
How do you see your bank evolving in the next five to ten years? More broadly, how do you see neobanks competing in the future banking landscape?
I see our bank evolving to become a leader in innovation, with an even stronger focus on personalized customer experiences. We plan to incorporate emerging technologies like artificial intelligence and machine learning to offer financial solutions that are more intuitive and tailored to each user's needs.
Additionally, we aim to support young people and individuals with disabilities in gaining more opportunities in the job market, while continuing to improve accessibility, ensuring that everyone enjoys a smooth and satisfying experience.
As for competition among digital banks, I believe it’s natural that many will focus on offering faster and more transparent services. Customer trust will be a key factor, and those which excel in security and educating users on digital technologies will have an advantage. I envision a future where collaboration between digital banks and fintechs becomes more common, creating a financial ecosystem that benefits all consumers.
