Innovation through partnerships: AQRISK x Nordic Brazilian Capital

Brazil is undergoing a fintech revolution, and Nordic fintechs should be taking note.

The rise of fintech in Latin America (LatAm) over the past decade has shaken up the region’s financial landscape, driving innovation in the banking sector, boosting competition, and helping increase inclusion.

It is exactly this growth that prompted Danish fintech, AQRISK Banking Solutions, to set its sights upon the region for further expansion.

AQRISK: Nordic roots with global reach.

Founded in 2015, AQRISK is dedicated to empowering banks of all sizes through optimized decision support in critical banking tasks.

Their flagship product, AQOPTIMIZER, allows banks to operationalize risk appetite and implement comprehensive risk-based pricing frameworks. By utilizing advanced analytics and modern technology, AQRISK drives more efficient and profitable growth for banks, all while ensuring regulatory compliance.

AQRISK was designed with a global perspective, going beyond the Nordic market. Scalability has been a fundamental aspect of AQRISK's approach from the start - their solutions are standardized yet highly configurable, enabling easy implementation in any country worldwide, with minimal barriers.

LATAM: fintech’s hottest new market.

When Copenhagen Fintech announced it was taking a delegation of Nordic fintech’s to Brazil, the fintech capital of LatAm, there was no doubt AQRISK would be joining.

Brazil not only represents a very large and attractive financial market – it is also in the midst of a rapid digital transition. Tech-driven neo-banks are emerging at a rapid pace, and innovative fintech solutions with and within incumbent banks are heavily developing. AQRISK could see itself being a natural part of that journey – enabling banks to improve profitability and optimize their core banking business.

Seize unexpected opportunities.

Even though AQRISK had no initial expectations of forming a partnership or expanding into the Brazilian market, that’s exactly what happened.

The delegation allowed the fintech to present the AQOPTIMIZER value proposition to various Brazilian banks, upon which it received overwhelming interest. This solidified the foundation for an entrance into the LatAm market. However, there was still one question lingering:

How should they proceed?

This is where a strategic collaboration came into play. AQRISK started engaging with Nordic Brazilian Capital (NBC) – the one-stop-shop to the Brazilian market, assisting primarily Nordic companies enter, operate, and do business in Brazil.

A partnership with NBC would allow AQRISK to be supported at every step of the expansion. Through the collaboration, NBC would enact as a regional extension of the AQRISK Business Development team.

Already from its inception the partnership yielded value for the Danish fintech. The NBC Management team – represented by Christian Christensen and Lauritz Str?de Hansen – had vast experience from the local banking scene. At the same time, their deep and trusted relations within Brazil enabled a smoother engagement with many progressive mid-tier banks, as well as with some of the region’s largest financial institutions.

Learnings from a cross-border LATAM partnership.

No matter how good a partnership is, there is always something to learn.

Entering new markets always entails risks, and Brazil is no exception.

In an interview with Copenhagen Fintech, the AQRISK stresses the importance of weighing the benefits and drawbacks of launching in any market – Brazil, or otherwise.

Language barriers, time zone differences, solution adaptation, corruption, and political instability were among the challenges that the fintech anticipated upon entering this new market.

However, after a thorough due diligence process and multiple in-depth discussions around the business potential versus the risks of launching in LatAm, AQRISK decided that the potential upside significantly outweighed the deterrents. With NBC's support as a regional extension of AQRISK's business development team, the partnership would be able navigate these obstacles and lay the groundwork for success.

Another crucial lesson for any fintech looking to launch abroad, is the value of having boots on the ground. AQRISK recognized the need to establish a physical presence in Brazil, in order to effectively serve the local banking sector concentrated in S?o Paulo. This commitment to local engagement positioned AQRISK as a trusted partner for Brazilian banks seeking to enhance their profitability and decision-making capabilities.

A promising future.

Building trust and establishing awareness in a new market takes time, but AQRISK and NBC are already off to a strong start.

The partners expect to secure their first regional client within the next 6-9 months, a significant milestone that will pave the way for establishing a regional LatAm hub in S?o Paulo, Brazil, to strengthen the local presence and reach for the market. As part of that process, NBC will also function as AQRISK’s advisor on setting up the required facilities, including addressing legal matters, staffing and more.

On top of that, the partners expect to establish 1-2 net new clients on an annual basis and a total of 5 within the first 3 years.

All in all, things are looking good for the partners.