ANBC defends financial inclusion with quality and responsible use of credit

With the advance of digital access, the challenge now is to ensure sustainable use and avoid risks to the economy; Globally, 1.5 billion adults are still outside the financial system, according to the Global Findex 2021

Financial inclusion has advanced significantly in Brazil and around the world, driven by technological advances and accelerated digitalization in recent years. In Brazil, PIX has established itself as a success story by connecting informal workers to the financial system. Globally, however, 1.5 billion adults are still outside the financial system, according to the 2021 Global Findex.

According to Elias Sfeir, executive president of ANBC, the quality of financial inclusion needs to be discussed more than ever. “Financial inclusion is not just about an app, bank account, login or password, but about the real ability to use financial services in a conscious and beneficial way. The challenge now is to transform the visibility of consumers in the credit market into a qualified and safe inclusion, avoiding over-indebtedness and promoting the responsible use of financial services. To reach these individuals, it is essential to expand access to technology, especially in remote regions, and strengthen digital infrastructures for public use,” he explains.

The issue was at the center of discussions at the G20 summit last year, under the Brazilian presidency, with a technical group dedicated to improving this inclusion. The debate showed that, despite progress in access to financial services, there are still challenges to be overcome. “The focus of the Brazilian presidency at the G20 was precisely the quality of inclusion. Easy access to credit can be a trap if it is not accompanied by financial education. Over-indebtedness compromises social well-being and can have a negative impact on the economy as a whole. That's why it's essential that access to financial services is accompanied by transparency and clear information about financial products,” emphasizes Sfeir.

Another crucial point is the definition and measurement of financial well-being. Brazil has been a reference in this debate, with initiatives such as the Brazilian Financial Health Index, developed by the Central Bank and FEBRABAN with the support of credit bureaus, as well as the Positive Registry. “It's not enough to ensure that people have access to credit, we need to ensure that this credit is used consciously and sustainably.

The modernization of credit discipline through the Cadastro Positivo (Positive Registry) and institutional agreements have allowed cooperation between the financial industry with more capillarity of participation and other sectors, including telecommunications and energy, making millions of consumers visible for credit,” adds ANBC's executive president.

Credit will change - but the market still doesn't speak the same language