Itau Flips the Script on Fintechs as New CEO Reshapes the Bank

Latin America’s biggest bank seemed to be losing the race against a raft of upstart fintechs when Milton Maluhy took over as chief executive officer last year.

Itau Unibanco Holding SA had plunged almost 35% in the previous two years, shedding 130 billion reais ($25 billion) in market value, while digital competitors such as StoneCo Ltd. were soaring. Investors’ biggest fear was that Maluhy’s company would be left in the dust, a dinosaur that failed to keep pace with the digital revolution.

It didn’t turn out that way. Rising interest rates and shrinking global liquidity are hammering away at fintech ...