Financial institutions are betting on apps, data and artificial intelligence to prevent default and promote financial well-being

Brazil has reached 200 million people with some kind of relationship with the financial system.

Despite this, 76.1% of the population is in debt.

This scenario raises doubts about the real scope of financial inclusion and forces a reassessment on the part of the government and the banks.

According to the National Association of Credit Bureaus (ANBC), the priority needs to go beyond access: it is necessary to invest in the financial education of Brazilians.

The warning was made to the G20 in February and reignited the debate on the role of financial institutions in preventing defaults.

In 2023, the Central Bank published Joint Resolution No. 8.

The text obliges banks and other financial institutions to implement initiatives aimed at financial education.

Among the objectives are to improve consumer decision-making and strengthen customer relations.

These actions should be accessible and involve topics such as financial planning, responsible use of credit and building emergency reserves.

For Enrique Ramos O'Reilly, president of Moneythor in the Americas, just opening an account doesn't guarantee financial inclusion.

According to him, banks need to act as advisors, taking advantage of the data they already have on customer habits.

“The bank must help before the debt builds up. This is possible with technology, data and artificial intelligence,” he says.

Recent studies show that debt affects more than the budget.

Among those interviewed with overdue debts, 82% reported negative impacts on mental or physical health.

Concern about financial stability has become one of people's main anxieties.

In this context, banks are challenged to offer more than credit: they need to build ongoing supportive relationships with their customers.

Seven out of ten banking transactions in Brazil are made via cell phone.

Among Latin American consumers, 53% expect personalized offers and 62% want companies to anticipate their needs.

Hyper-personalization has become a requirement.

For Enrique, banking apps are ideally placed to deliver this new standard of relationship.

Moneythor recently launched the Empower platform in Latin America.

The solution offers tools for banks to help their customers manage expenses and organize their finances.

The platform includes personalized tips, budget suggestions and gamified incentives to encourage healthy habits.

According to Enrique, the proposal is to turn the bank into a close and accessible partner.

With this, it is possible to reduce defaults, strengthen the bond with the client and establish a new standard of financial inclusion.