Financial intermediation and innovation: linking international agents and local investors

Abstract

Abstract The purpose of this paper is to analyze the financial intermediation market practiced by Autonomous Investment Agents (AIAs) and to identify links between large international asset managers and investors from inland regions of the country. The research is linked to studies of economic sociology and finance that deal with financialization, a process in which financial groups have organized economies and explored innovations such as Exchange Traded Funds – ETFs, contributed to the expansion of asset loans and stock buyback programs, leading to implications for companies and societies. This is an exploratory study that combines historical perspectives, documental analysis, content analysis and a case study. Interviews were conducted with representatives of AIAs companies and the Brazilian Association of Autonomous Investment Agents (ABAAI in Portuguese). In inland municipalities, AIAs aim to reach local elites, "private" customers of traditional banks, expanding the provision of financial services on digital platforms. Considering the proposal to offer Financial Education to clients, AIAs spread the dominant financial culture and innovations such as ETFs. Professionals and AIAs offices in the inland municipalities complement the necessary resources to AIAs companies and partner brokers to access these markets.

Keywords

• Financial advice
• Financial education
• Stockbrokers
• Financialization
• Economic sociology