Which stocks to trade in Brazil in 2023?

Since the election results, news and conversations have been focused on 2023 and the possible changes in course in the most diverse sectors of Brazilian politics and economy.

First of all, 2022 should be kept in mind because a lot happened in that year. Since the Central Bank's official introduction of Open Finance, there have been advancements in data sharing and payments, with a focus on solutions like Banco do Brasil's introduction of the first open finance product ever offered via WhatsApp.

The arrival of payment initiators, represented by INIT, and new data sources, such as card receivables, in addition to the advancement of well-known solutions, like personal finance managers powered by data, are among some of the highlights of the year.

We can advance significantly in areas like payment and credit access, and ERP software and its clients are among the clients who are currently reaping these benefits. But although consumers are beginning to see the first advantages in such areas, there is still much work to be done in order to deliver and communicate to users all the benefits of the model, as well as incorporate more market solutions as regulation and implementation for this public advances.

Thanks to bold planning by the regulator and the collaboration of innovators in the financial sector, we had an exciting 2022 that energised companies to continue with their efforts towards a more competitive, accessible and quality service delivery financial sector.

What about 2023?

Some experts think of Open Finance as a kind of industrial revolution: The model is here to stay and strengthen itself. While the ups and downs of the economy are subject to the winds of politics, as well as tangential issues that interfere with the adoption and impact of Open Finance (for example, the 5G structure, public policies for financial inclusion, or even regulations regarding the crypto universe),in 2023 we should see its consolidation

Initially, the Open Finance Committee envisions improvements in data sharing, as well as new sources covering investments, insurance, pensions and foreign exchange. Also, we should see new players from the neobank universe joining the scope of Open Finance through voluntary membership, following the success of companies like Nubank which, since the modality was enabled, in a period of 3 months, has already had more than 2 millions of shares.

Through the partnership with Open Finance data and payment platforms, this scope increases even more and allows players outside the financial sector to also use the model to bring more practicality and quality of service to their customers, using, for example, the new payment methods inaugurated with Open Finance: with many new possibilities of use to come, the initiation of Open Finance payments already presents advantages in several cases in relation to methods such as credit cards, bank slips or the native pix itself.

As we delve into the world of payments, we are eager to follow the development of the initiation models with PIX because they will enable some really fascinating solutions, with a focus on VRPs (Variable Recurring Payments): the solution enables a consumer to, for example, use PIX to keep a pre-authorization payment on a platform, exactly as you do with your credit card, to make paying easier and lower dropout fees.

These are just a few of the promises made by Open Finance for the upcoming years; and undoubtedly, there are still things that we hadn't yet considered that will astound us throughout 2023.

Amidst the turbulence, some stocks to watch in Brazil include:

• Banco do Brasil (BBAS3)
• Itau Unibanco Holding (ITUB4)
• Vale (VALE3)
• Petroleo Brasileiro SA (PETR4)
• BRF S.A. (BRFS3)
• Gerdau S.A. (GGBR4)
• Banco Bradesco (BBDC4)
• JBS S.A. (JBSS3)
• CCR S.A. (CCRO3)
• Cosan Limited (CSAN3)

Please note that this is not a recommendation to buy or sell any of these stocks and you should conduct your own research before making any investment decisions. Additionally, the stock market is subject to change, so the performance of these stocks in the future may be different from their performance in the past.