Banco Modal
“Can a mid-sized Brazilian investment bank reinvent itself as a digital investor-focused platform with BaaS and insurance layers — or does it need to be absorbed by a larger broker (XP) to survive?”
Founded1996
HQRio de Janeiro, Brazil
Latest roundAcquired by XP Inc. (2022)
IndustryBank / National
The story
Banco Modal started in 1996 as a traditional Brazilian investment bank. In 2015 it launched modalmais, a digital broker/bank targeting retail investors, and used the 2020-2022 window to broaden into insurance, home-equity lending (via KeyCash) and BaaS (via the Live On Solutions acquisition, rebranded Modal as a Service). The company was acquired by XP Inc. in 2022, folding Modal's retail-investor base and BaaS assets into XP's ecosystem.
Last 12 months
—
Product timeline
1996
Founded as an investment bank in Rio de Janeiro.· banking
2015
Launched modalmais, a digital bank for investors.· banking
2021
Acquired Live On Solutions, later rebranded as Modal as a Service (BaaS arm).· acquisition
2021
Invested in KeyCash (11.25% stake) to enter home equity lending.· lending
2022
Launched insurance vertical with Prudential, Icatu, MAG and SulAmérica partnerships.· pivot
2022
Acquired by XP Inc.· acquisition
Acquisitions
Regulated entities
1
regulatory licence held by Banco Modal
Licence types, jurisdictions and registered entities are in the Embedded Finance Index report.
The stack
7 layers disclosed in Banco Modal’s embedded-finance stack
Payments / PSP
Banco Modal (self-operated)
Money movement
in the full report
Banking / BaaS
in the full report
Card issuing
in the full report
Lending
in the full report
Insurance
in the full report
Investing
in the full report
Accounting gap: none
13 more providers across 6 layers, with confidence-scored evidence and source URLs, are in the Embedded Finance Index report.