Business
XP Inc. Comments on IFA Activity in Brazil
SÃO PAULO, Brazil--(BUSINESS WIRE)-- XP Inc. (Nasdaq: XP), or XP, a leading, technology-driven platform and a trusted provider of low fee financial products
About this update from Xp Inc.
[{"type":"text","content":" SÃO PAULO, Brazil--(BUSINESS WIRE)--\nXP Inc. (Nasdaq: XP), or XP, a leading, technology-driven platform and a trusted provider of low fee financial products and services in Brazil, commented on the dynamic and high potential investment advisory business in Brazil and, specifically, about the recent developments involving the IFA activity in the country.\n\nXP Inc. has developed and invested in the Independent Financial Advisor (IFA) profession since its inception more than twenty years ago, having started as an IFA office and becoming a broker-dealer seven years later.\n\nBased on a strong purpose, long-term vision, customer focus and constant investments in technology and systems, our IFA business and, consequently, our partnerships, have achieved exceptional success, with most IFA offices growing exponentially along with XP in recent years.\n\nIncumbent banks continue to reduce costs and consolidate branches. Furthermore, Brazilians are increasingly searching for better investment options, with both trends likely driving accelerating growth for the IFA profession in the coming years. In this context, XP has been one of the most popular destinations for new professionals and will continue to invest to increasingly differentiate the company as the best platform for entrepreneurs.\n\nThe remarkable growth of the investment industry outside legacy banks is conducive to the development of other forms of entrepreneurship that go beyond the successful IFA model. One of these alternatives is the creation of broker-dealers with XP holding a minority stake, in which we become service providers in the offering of products and a strategic partner in building businesses. One of the advantages of this partnership model between IFAs and XP is the continuity of the business without any friction in the customer experience.\n\nThe different models of entrepreneurship will certainly coexist, since they contemplate the long-term vision of the entrepreneur with the customization of service to the end customer. This diversity of service structures is a key difference compared to the traditional bank branch model.\n\nRegarding the departure of offices from the platform in recent years, we see the movement as a natural process considering the network of 9,000 advisors linked to XP and the difficulty encountered by competitors in organically buildin...