Brazil’s central bank has ordered the extrajudicial liquidation of Will Financeira SA Crédito, Financiamento e Investimento, commonly known as Will Bank, a digital banking fintech previously under the control of the now-defunct Banco Master SA. This move marks a significant escalation in the repercussions stemming from Banco Master’s collapse late last year.
Banco Master, a mid-sized Brazilian lender, was placed into liquidation by the Central Bank of Brazil in November 2025 amid serious allegations of fraud, liquidity shortages, capital deficiencies, and involvement in questionable credit operations.
As first reported by Bloomberg, the regulator’s actions followed federal police investigations into suspected fraudulent activities, including the trading of nonexistent credits.
The bank’s controlling shareholder, Daniel Vorcaro, has faced scrutiny, with ongoing probes potentially leading to criminal charges in the coming months.
Initially, Will Bank was spared from the immediate liquidation process that engulfed its parent company.
When Banco Master was shuttered, the fintech was placed under a temporary special administration regime.
This arrangement was intended to provide time for potential restructuring or sale, preserving its operations and protecting stakeholders.
Reports indicated active negotiations for its acquisition, with Abu Dhabi’s sovereign wealth fund Mubadala emerging as a leading interested party.
Mubadala’s involvement raised hopes for a market-driven resolution that could have sustained the fintech’s business, which focused on offering credit cards—often in partnership with Mastercard—to lower-income segments of the population.
Despite these efforts, the Central Bank deemed a private-sector solution unfeasible.
On January 21, 2026, it announced the liquidation, citing Will Bank’s severely compromised economic and financial health, outright insolvency, and deep ties to Banco Master through shared control and interests.
The regulator described the decision as inevitable after failed attempts to resolve the situation through market mechanisms.
Earlier optimism about a sale faded amid mounting regulatory pressure, including oversight from Brazil’s Federal Court of Accounts (TCU), and persistent fraud concerns surrounding the broader Banco Master group.
The fintech’s downfall adds to the broader fallout from Banco Master’s failure.
The incident has strained Brazil’s financial system, including significant payouts from the Deposit Insurance Fund (FGC) to protected depositors and potential ripple effects on partners like Mastercard, which reportedly faced exposure through outstanding obligations.
Will Bank had reportedly held substantial term deposits and engaged in billions in transactions, amplifying the systemic impact.
This liquidation underscores the Brazilian central bank’s firm stance on resolving troubled institutions linked to irregularities, prioritizing financial stability over rescue attempts when underlying issues prove too severe.
As investigations continue, the case highlights ongoing challenges in Brazil’s fintech and banking sectors, where rapid growth can sometimes outpace proper oversight.
