W&F Issue 3 2018

Wealth & Finance International - Issue 3 - 2018 11 Diverse Skillsets Combining to Deliver an Unrivalled Service Question:What aspect of the Prudent business would you like to highlight to the readers of our magazine? Answer: Firstly, I would like to thank Wealth and Finance for bestowing another significant award on us at Prudent. Given all the hard work performed on a daily basis by the teams in our offices in São Paulo, it is excellent that Wealth and Finance has recognised the consistently high risk-adjusted returns we produce to our investors. Secondly, I would like to highlight our consistent drive to innovate our product offering to our Borrowers in order to create truly long-term and mutually beneficial business relationships. These efforts were mentioned already when Giovanni Cataldi, the CEO of one of the Prudent businesses in São Paulo, was interviewed by your fine magazine in October 2016. Q: Is there anything in particular you would like to mention on the innovation front? A: Given the present ‘buzz’ surrounding Brazilian FinTech companies caused by the wildly successful PagSeguro 24 January 2018 NYSE IPO, which was priced above the top of the range at USD 21.5 and raised 2.3 billion USD, it is natural to focus on our own Card Processing venture which we launched 20 months ago. For lack of a better word, we have created our own Echo-System of Point of Sales Machines (PoS:es) and Alternative Merchant Banking Software enabling our Merchants to entirely break free from the Brazilian banks. Q:Why is this development significant for your Borrowers? A: The Brazilian banking market is extremely oligopolistic and despite the fact that Brazil is by far the largest card market in Latin America, with over 1 250 billion BRL, equalling roughly 385 billion USD at the BRLUSD-rate of today, in card sales in 2017 Merchants/Borrowers are paying absolutely horrendous rates for short term money. Our software solution is the first in the market providing the opportunity to carry out all traditional banking services entirely outside of the banking system. After a year of trials, research and discussions with our Borrowers/Merchants and their Customers, our Card Processing Entity, SCF Cartões, is ready to launch its own Sub-Acquirer which on top of the seamless banking alternative payment service will have the ability to issue pre-paid debit cards. Presently, the average Brazilian family only spends 30% of the total consumption on card purchases, and the Government is pushing the public to utilise cards more for daily purchases in order to lower the dependence on cash. These facts make it easy to understand that the strong growth will continue in the Card Market. Q: It is easy to understand that this development is highly exciting for the Prudent Group/SCF Cartões, but what is the benefit to your investors? A: Card processing is globally one of the most lucrative pockets of all financial activities. To take a non-Brazilian example, when you catch a taxi in Diverse Skill Sets Combining to Deliver an Unrivalled Service Wealth & Finance Magazine is speaking to Jon Malmsäter of the Prudent Group, who has recently been chosen by the awards team of the magazine as 2018’s ‘Leading Hedge Fund Manager of the Year,’ as part of the ongoing ‘Leading Experts of 2018’ awards. Jon Malmsäter photographed with a WoW! PoS at the Fondamenta dei Tedeschi Venice