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In 2018 alone, the credit bureaus operating in the Brazilian market produced around 338 studies. This high number of surveys, studies and analyses demonstrates the sector's important role in generating highly relevant information on credit. The knowledge generated provides companies, consumers and the government with indispensable information for making better financial decisions, as well as legislative proposals.
The purpose of a credit bureau is to ensure transparency in the relationship between lender and borrower, and for this to happen, both need to have reliable information. They need to know - and be constantly updated - about defaults, credit, the degree of trust, payment behavior and fraud, which are precisely those addressed in the surveys.
Default, in fact, is the subject that appears the most in these surveys, with more than 60 studies. The credit bureaus have their own indicators that show defaults in the country. This information is relevant, for example, to the government because it can serve as a stimulus for the formulation of public policies dedicated to combating this problem, which especially affects the younger generations, as shown in recent survey by ANBC (National Association of Credit Bureaus). Four out of ten Brazilians in debt belong to generations Z and Y (up to 37 years old). Also according to the study, 32% of generation Z, the age group up to 21, with a population of 13.8 million, are in default, which is equivalent to 4.4 million in debt. The situation is worse for the next generation, Generation Y, aged between 22 and 37 and comprising 51.5 million people, with a debt percentage of 40%.
From the entrepreneur's point of view, the default indicator is a valuable source of information for making decisions. Alongside other indicators, such as economic activity and confidence, which are also measured by the bureaus, the entrepreneur is in a better position to evaluate a decision on, for example, expanding their activities.
Individual micro-entrepreneurs received special attention from bureaus in 2018, a year in which there was enormous growth in this type of business. The number of companies set up under this tax regime has set a record in Brazil. There have never been so many MEIs as there are now.
The main reason for this development is high unemployment. With the difficulty of finding a formal job, Brazilians have resorted to running their own businesses, known as entrepreneurship by necessity.
In the studies promoted by the bureaus, in addition to the information, analyses are also presented, which are generated by high-level technical staff made up of economists and statisticians.
This year, the situation is no different, and the data generation and dissemination agenda has already begun. At this time of year, one of the objectives is to measure the consumer's ability to pay in relation to start-of-year bills such as taxes and, for those with children, school supplies.
The economy makes the country go round, and credit is the main driving force. The credit bureaus are key players in generating and analyzing information for credit assessment, helping to create and maintain a transparent, healthy and sustainable economic environment.
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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.
