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In the last article, In this issue of the magazine, we looked at the latest developments in terms of credit and financial services. We saw that a growing number of consumers have access to virtual accounts, instant payments, investment platforms and other innovations that make life easier, open the doors to credit and allow them to better manage their budgets.

There is also another reality: that of consumers without access to a bank account, called unbanked. Data from the World Bank shows that, in 2017, the percentage of adults with access to a bank account in the country was 70%, compared to 68.5% for the global average. Compared to the rest of the world, Brazil does well in the ranking, although it has a lot of room for improvement. Among the OECD (Organization for Economic Cooperation and Development) countries, the proportion was 90%, an enviable figure.

In absolute terms, using data from the Locomotiva Institute, the number of unbanked people was 45 million in 2019. According to the survey, 59% of the unbanked were women, and 86% belonged to classes C, D and E. The survey also revealed that 51% of the unbanked had already used a third-party credit card, which shows that there is demand for these services.

The year 2020, despite all the difficulties it has brought, could improve this situation. Recently, Caixa Econômica Federal announced its intention to maintain the digital accounts that were created to receive the Emergency aid. In all, around 40 million accounts have been opened. The next step, according to the bank, will be to create microcredit lines to help these new bankers.

De-bankarization leads to another major problem: informality. In fact, they are two sides of the same coin. Without a payslip or proof of income, even if the consumer has overcome the barrier of bankarization, access to credit becomes more difficult. A report by the Central Bank - “Studies in Education, Protection and Inclusion” - showed that, among the informal, the percentage of people who have never had access to a bank account is almost twice as high as the percentage among the formalized.

Some figures on Brazilian informality, according to the IBGE (Brazilian Institute of Geography and Statistics): in June 2020, the PNAD survey registered a total of 28.9 million informal workers, which represents 35% of the workforce. The figure is lower than in previous months, reflecting the general fall in the workforce, but it is still very high. The aggregate figure for the country hides even more difficult regional realities. Also according to the IBGE, in eleven states, the number of informal workers represented more than half of the workforce in February 2020.

Businesses that opt for informality also come up against the credit barrier, which limits their capacity for growth and productivity. We know, moreover, that even small, formalized companies face difficulties in accessing credit. In the case of companies, informality is generally seen as an escape from a complex tax system.

To make up for the lack of information about the unbanked population, the Positive data will be an important instrument, as it will allow the solvency of these consumers to be measured through other types of account, such as telephone and basic services. Advances like this, which are directly related to the credit market, need to continue in order to bring about financial inclusion. It is also important to move forward on other fronts, stimulating the recovery of the job market and business activities.

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By: Elias Sfeir President of ANBC & Member of the Climate Council of the City of São Paulo & Certified Advisor