Amid the rise of fintechs, Wiz (WIZS3) embarked on the trend and revolutionized the insurance system. Through bancassurance – a method by which banks and insurance companies mutually benefit from the offer of insurance within a banking institution – Wiz combined technology and individualization to improve the insurance industry.
However, in November 2020, Wiz (WIZS3) saw its luck change. With exclusivity in the sale of insurance by Caixa Econômica Federal, former executives of the company and at the time a counselor were involved in a corruption scheme and investigated by the Federal Police.
Despite the violent fall in shares, Wiz has certified shareholders that internal measures have been put in place to control and identify possible organizational failures that have occurred in past managements.
As a way of unraveling the company's next steps, I spoke with Heverton Peixoto, CEO of Wiz (WIZS3) and one of the most respected names in the industry about the future, opportunities and threats that await the institution in 2022. Before you read the interview, I confess I was impressed with the executive's management skills and his business plan.
What does Wiz (WIZS3) do?
To put it in context, the company had its origin in a sales force for marketing, gamification and stimulating the sale of insurance. This was the origin of the company years ago, which made it self-proclaim as an insurance broker when it appeared on the stock exchange in 2015. Over time, however, we have evolved and become specialists in sales marketing.
To be didactic, I will make a parallel with another industry with which the reader may be more familiar, that of beverage distribution. In this field, we would have Coca-Cola, but we would also have Femsa, a company specialized in logistics, sales, telemarketing and stimulating the seller, that is, an organized management of an army of sales. This is what Wiz is becoming. Therefore, there is a lot of technology, CRM and connectivity expertise involved in the process.
As we have no inventory, we only deal with financial products, our logistics become more inverse than the traditional one. Today we have 425 municipalities served by Wiz, all connected to the reverse document flow.
It is important to note that we started with the sale of insurance, however, in the last one and a half years, we have also entered the niche of financial products, with credit being the main one. In this way, investors can ask themselves who is closer to us, closer to their connection.
Can I summarize Wiz as a more credit-oriented insurance and financial products platform?
Exactly. As we are very focused on B2C, we are the articulators, that is, we arrive at individuals with another name, such as Caixa Seguradora. Today, we deliver more than 600 brands through our partners. In this way, our partner is delivering our brand. We arrived via car dealership, for example. Thus, we specialize in what we talk about, but we profit from partner counters. Our brand does not appear to the end customer.
Who do you consider your biggest competitors?
It is difficult to benchmark. For example, in healthcare, the benchmark is Qualicorp (QUAL3-4.10%), which has a B2B2C very focused on platforms. As for Wiz (WIZS3), I believe that today there is no one with the ability to approach a bank and say that it will revolutionize the way insurance is handled. I believe that the emblematic case of Wiz's ability to aggregate is the work we did with Banco Inter (BIDI11).
Obviously the greatest merit is Inter who did a fantastic job. We have been there for a year and a half, and the number of insurance sales grew by 418%. So, when you have this level of intelligence, structuring a model that we call 'Concierge', the customer who buys Wiz insurance will not be treated by the insurance company, but by Wiz who has the duplicate incentive to treat that customer well, whether in car or residential assistance, for example.
We have just entered 2022, with the vaccine coming and the processes improving. What opportunities do you see for Wiz (WIZS3) now in 2022?
We have many opportunities, but we also have threats. As an opportunity, I believe that financial institutions understood that they need to reformulate themselves and look at the customer differently than the treasury view. We live in an era, about 10 years ago, when the bank's predominant area was treasury.
When the bank was sliced, the treasury accounted for 95% of the institution's profit, because they were able to take credit and grant in a wide spread. There were tariffs and other purchased services that made a financial institution highly profitable. I believe this will end. The bank that forgot the customer and outsourced the distribution channel does not understand what is happening.
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When the bank stops looking at the final point, it does not know what the customer is feeling, and has returned to the treasury by charging a fee, this bank is in a complicated situation. At this time, Wiz arrives with a proposal to acquire capital and with the professionalization of the product portfolio structure, facts that increase the capacity to aggregate and bring customers closer together. So I can say that we have more than 25 banks that have not yet agreed to this new paradigm and opportunity.
Wiz also comes from a history of a single bank. Until 2018 we were unable to do business with other banks. And this contract, which is typical and has high rates and a very profitable operation model, will be transformed. He is always transformed. Therefore, the Wiz investor should be aware, since the amendment to this contract offers a lot of loss and a lot of opportunity. This is the current dynamics of the company, which is being prepared for this revolution.
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The post Wiz (WIZS3): what is the future of shares in B3 (B3SA3) after investigation? first appeared in 1 Billion Financial Education.
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