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In recent years, we have experienced major changes in the way we pay, receive and access various financial services. Technological advances are one of the driving forces behind these transformations. Going to a bank branch is an increasingly rare option. Unless the consumer prefers to go face-to-face, they can solve almost everything remotely.

According to latest edition of Febraban's Banking Technology Survey, transactions via mobile and internet banking accounted for 67% of the total banking transactions by 2020, supplanting face-to-face forms. This trend, which was already evident before the pandemic, has been reinforced by the need for distance.

More than just a change in the way people are served, the digitalization of financial services is helping to reduce barriers in this market and encourage competition. For consumers, this means agility, convenience and the possibility of reducing the cost of credit and fees.

Researching the conditions of a loan, comparing terms, rates and interest rates, is just as important as researching the prices of goods and services. To facilitate this search, consumers today have at their disposal marketplaces that allow you to evaluate different proposals and make better decisions.

Digitalization also favours financial inclusion. In 2020, Caixa Econômica Federal very quickly opened more than 105 million Digital Social Savings accounts, giving more than 35 million Brazilians access to basic banking products, according to figures released by the institution.

At the same time as this change, the management of personal finances has been made easier by credit bureaus, which for some time now have made it possible to check the registration status of one's CPF or CNPJ. The records are in the palm of your hand and both information on negativity and the credit score can be consulted quickly and free of charge, empowering consumers and legal entities. This diagnosis is the first step towards cleaning up the accounts of consumers and companies. The next step is the debt renegotiation fairs promoted by the bureaus, which are also now available on digital channels. These actions are of interest to both creditors and debtors, contributing to the financial health of families and companies, as well as being beneficial to the economy.

This transformation goes beyond form. The volume of data processed by the bureaus has grown exponentially and is now treated with Analytics tools, It combines statistical modeling, computing and business knowledge, as well as bringing simplicity to complexity. This combination makes it possible to transform the huge amount of information into intelligence, which is indispensable in risk analysis processes and in the other stages of the business cycle.

Another important transformation is taking place in the way we pay, receive and transfer funds. Credit and debit cards continue to grow, but other innovations are already taking hold. The figures for PIX, created by the Central Bank of Brazil, speak for themselves: a few months into its first year of operation, the system already has 280 million registered keys and almost 100 million users, according to data from July 2021. This success has been measured practically in real time, something that only digitalization can allow.

In addition to the usual transfers and payments, the recently announced PIX Garantido will allow scheduled and installment payments, functioning as a form of credit. In the same way as instant payment is positioning itself as an alternative to debit cards, the PIX Garantido could be an alternative to credit cards. And there's more news on the radar: Open Banking being implemented and monetary authorities in several countries studying the creation of official digital currencies, including Brazil.

This whole scenario of evolution has been integrated in some way into the activity of the bureaus, especially in aspects related to intelligence in the credit cycle. Throughout its history, the sector has incorporated the technological frontier into its business, refining credit analysis and contributing to the soundness of the Brazilian economy and credit market, always with the aim of reducing information asymmetry in the credit market and, at the same time, helping consumers to practice financial control, encouraging conscious consumption and responsible credit.

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