Government Relaxations – INSS and Digital Work Cards

One of the most significant changes comes from the National Social Security Institute (INSS), which has introduced a Normative Instruction allowing new policyholders to request credit within the first 90 days of receiving their payments. This overturns a restriction that had been in place since 2022, giving retirees and pensioners earlier access to credit. The new rule is set to come into effect in 2025, marking a significant shift in how government retirees can obtain payroll loans.

Additionally, private-sector employees stand to benefit from the introduction of the Digital Work Card as a new tool for payroll loans. This measure allows employees to apply for credit directly via their mobile phones, eliminating the need for banks to act as intermediaries between companies and employees. This advancement is part of a larger initiative approved by the FGTS Board of Trustees and announced by the Ministry of Labor. While the measure still awaits publication in the Official Gazette of the Union and requires legal adjustments, it represents a significant leap toward simplifying credit acquisition for private-sector workers.

Payroll Funds: A New Frontier for Credit Access

In parallel with these regulatory shifts, fintech companies are seizing the opportunity to introduce innovative solutions to the payroll loan sector. One standout example is the Raman Group, led by its president Alberto Raman. The company has recently launched a payroll fund registered with the Brazilian Securities and Exchange Commission (CVM) and managed by Monte Capital. This fund allows for direct access to credit through payroll funds, offering an alternative to traditional banking routes.

The Raman Group has established itself as a key player in this evolving landscape, with a future portfolio valued at nearly R$400 million. The acquisition of VemCard S.A., a company specialized in payroll benefit cards, has bolstered the Group’s offerings. VemCard has already originated R$200 million in credit rights, further enhancing the Group’s ability to provide flexible and accessible credit solutions. Alberto Raman believes that these changes will allow the company to grow exponentially, with the ultimate goal of handling R$1 billion in credit rights in the near future.

Diversification of Payroll Loan Services

The relaxation of government restrictions and the rise of digital solutions are contributing to a diversification of services in the payroll loan sector. With more options available, borrowers can now access credit through a variety of channels, including payroll funds like the one introduced by the Raman Group. These funds provide a direct route to credit, bypassing traditional bank partnerships and offering more competitive terms.

Alberto Raman has been vocal about the importance of monitoring government payroll rules, as these changes directly impact the Group’s operations. “We are closely monitoring changes to the government’s payroll rules, as they directly relate to our area of expertise,” said Raman. By investing in both people and technology, the Raman Group is positioning itself as a leader in this new, more flexible environment. According to Raman, “Our fund arrives at a very opportune moment when it has never been so easy to acquire credit as advantageous and safe as a loan.”

The Road Ahead: Expanding Opportunities in Payroll Credit

The changes in payroll loan regulations, combined with the technological advancements spearheaded by companies like the Raman Group, signal a new era for the industry. With the government easing restrictions and fintechs developing innovative solutions, borrowers can expect a more streamlined and accessible credit process.

Alberto Raman and his team at the Raman Group are at the forefront of this transformation. With a strong commitment to leveraging the latest technologies and a keen focus on government policy changes, the Group is well-positioned to capitalize on the growing demand for payroll loans. As Raman explains, “Our intention is to operate up to R$1 billion in credit rights,” a goal that seems increasingly attainable as the regulatory landscape continues to evolve in favor of greater flexibility and access.

Conclusion: A New Era for Payroll Loans

The payroll loan sector is undergoing a period of rapid transformation, driven by both government initiatives and fintech innovation. The changes introduced by the INSS and the Digital Work Card are set to make credit more accessible for retirees, pensioners, and private sector workers. At the same time, fintechs like the Raman Group are providing new alternatives through payroll funds, offering a more direct and efficient path to credit.

Alberto Raman’s vision for the future of payroll loans is one of growth and innovation. With the Group’s portfolio already nearing R$400 million, and the expectation to manage R$1 billion in credit rights, the Raman Group is leading the way in this new era of payroll lending. The combination of government reforms and fintech solutions promises to make payroll loans more accessible, safer, and more advantageous than ever before.