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The new Cadastro Positivo model, which should be approved soon, is an achievement for Brazilian consumers. The right to the Register will now be exercised automatically, overcoming the obstacles and complexity of the current model.
In my previous posts here on LinkedIn, I talked about the main aspects of the Cadastro Positivo, highlighting the differences between the "opt-out" model, which should be adopted, and the "opt-in" model, the current one.
The Positive data for everyone will enable consumers to take advantage of many benefits. I've listed the seven main ones below.
1) More transparent relations between creditor and consumer;
2) More balanced and fair interest rates;
3) Consumer empowerment through the credit score, which, with the receipt of positive information, shows a significant improvement in the lower income brackets;
4) Democratization of credit by allowing the unbanked population to access credit;
5) Reduction in defaults by around 42%, with a drop in interest rates as a consequence;
6) Injection of around 1.1 trillion reais into the market in the medium term;
7) Oxygenation of the economy with an increase in annual GDP of 0.5%.
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President of ANBC - National Association of Credit Bureaus. Representative of Latin America in the World Bank Credit Committee. He also represents Brazil and Latin America in credit organisations accross the world, such as ACCIS, BIIA and ALACRED.
