How AI is redefining banking productivity in Brazil and around the world

Source: https://cantarinobrasileiro.com.br

By Elias Sfeir - President of the National Association of Credit Bureaus (ANBC)

The artificial intelligence (AI) revolution is transforming the global financial sector and Brazil is part of this movement. According to study by the Boston Consulting Group (BCG), the strategic and large-scale adoption of AI can raise the productivity of banks between 35% and 50%, with significant impacts in areas such as customer service, risk management, internal operations e technology.

Brazil is emerging as one of the countries most receptive to the digital revolution in the banking sector. Recent article in Valor Econômico points out that although productivity gains from digitalization have been modest so far, the potential for growth is enormous. Between 2018 and 2023, Brazil had an annual gain of 3.5% in the metric of assets per employee, outperforming countries like Canada, the United States, Australia, the United Kingdom and India, but still below markets like Saudi Arabia, China and Indonesia.

The BCG study points out that the country is among the markets where fintechs and digital banks, such as Nubank, have gained scale and institutional recognition, being treated as big banks by regulators and consumers. This trajectory reflects a global trend: in countries like the United Kingdom, Poland and South Korea, the so-called “digital attackers” are gaining space and market value, challenging traditional banks by presenting more agile and customer-centered models.

An emblematic example of Brazilian innovation, Pix, an instant payment system, has moved US$ 5 trillion by 2024 in primary transactions, surpassing the global volume of stablecoin transactions (US$ 4 trillion) and approaching giants such as Mastercard (US$ 10 trillion) and Visa (US$ 13 trillion). This leadership reinforces the country's potential to integrate digital assets into the traditional financial system, a frontier that could redefine credit and liquidity in the near future.

The material produced by the Boston Consulting Group shares more global cases, including:

South Korea and Poland: Digital attackers such as neobanks have already captured more than 60% customer base in some markets.
United States: Banks that have adopted AI strategically have already achieved up to 5% improvement in revenue or cost reduction, with projections of up to 50% transformation of operational functions.
Europe: Banks that lead in domestic deposits have valuations of up to 3x bigger than its competitors.

AI: From Tool to Business Strategy

The key to unlocking this value lies in the bold adoption of AI, combined with process re-engineering and a focus on leaner, more specialized business models.

International examples show that banks with focused models, such as those specializing in wealth management or credit, outperform universal banks, even with higher cost structures. This is due to their ability to generate recurring income with high value-added products and less dependence on interest margins.

Artificial intelligence has become a central part of business strategy. BCG's 10-20-70 model reinforces that 70% successful AI adoption depends on people and culture, In addition to technology. This requires a profound change in the way banks operate, with integration between areas, a focus on value and a reimagining of processes.

Opportunity for Inclusive Credit

AI can be a powerful ally in quality financial inclusion, This is a central issue on the G20 agenda. With more precise and ethical algorithms, it is possible to increase access to credit for historically excluded populations, such as micro-entrepreneurs and informal workers, without compromising the sustainability of the system.

Artificial Intelligence (AI) has been a concrete reality in the credit sector for more than 20 years, with concrete results of how AI has transformed processes such as updating scores in real time, detecting fraud, automating statistical models and expanding credit responsibly. For those wishing to understand how these advances are being applied in practice by Brazilian credit bureaus, increasing inclusion, governance and efficiency, we recommend reading the article published by ANBC on LinkedIn: “Artificial Intelligence in Credit: from promise to practice”.

Brazil has a unique opportunity to stand out more and more in this transformation. The path is similar to countries like the United States and China, which are starting from an advanced state policy, strategy, legislation and regulation. China, for example, has an AI literacy strategy in its education curriculum at various levels. While here we have consumers eager to use digital technologies and a vibrant fintech ecosystem, which could make the country a global benchmark in smart and inclusive credit.

For Brazil to consolidate its leadership position, it needs the right talent in business with emotional intelligence, the ability to work in teams, flexibility, resilience and critical thinking. Another fundamental point is to have training programs for professionals to develop and use AI. After all, more than technical structural tools, The transformation that will remain is the one that happens when the psychosocial factors.

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