Brazil at the Vanguard of Financial Technology

It is nothing new that cybercrimes and technological instabilities increasingly affect people's routines. One of the most recent and striking episodes was the cyber blackout that caused interruptions in several systems around the world, including financial ones. However, Brazil was one of the least affected countries. The reasons for this are diverse, but the occasion raised the question: Which technologies make the Brazilian market stand out in relation to the rest of the world??

In the most recent edition of Febraban, the largest Brazilian technology and innovation event in the financial sector, Pedro Alvarenga (CFO & IRO) and Guto Malzone (Commercial Executive Director) shared valuable insights into how Brazil leads the revolution in financial technologies and the transformative impact of Artificial Intelligence. Check out the highlights of this conversation below.?

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The importance of balancing the 3 pillars of transformation?

01. Regulation: Regulated markets, like Brazil, require great efforts from companies and institutions to adapt new technologies or business models. Among recent examples, we have Fintechs, Pix, Open Finance and digital currencies.?

02. Technology: This is what allows the creation of new products and provides access to resources, easiness and efficiency gains.?

03 User experience: Reducing friction and offering journey possibilities are just some of the strategies that put the user at the center of new product decisions.?

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Brazil: from great challenges great novelties arise?

Although Brazil faces significant challenges such as fraud, inflation and high interest rates, these difficulties have shaped resilient and innovative companies and leaders. The rapid evolution of the Brazilian financial sector is remarkable: today, the country has 250 million active accounts, 90% of the population has at least one bank account and 77% of financial transactions are carried out digitally.?

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Brazilian heavy users create opportunities?

Brazil stands out as one of the largest consumers of technology in the world, ranking 2nd in internet use and online financial services. Brazilian heavy users access banking applications up to 36 times a month, looking for products and services that offer loyalty, security, transparency and personalization. ?

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Differentiation and exclusivity with customized journeys and AI?

For companies seeking to develop exclusive and difficult-to-reproduce products that not only add value to the customer but also maximize profit, investing in the customer experience is essential. Currently, 67% of Brazilians are willing to share their personal data in exchange for a personalized experience, 70% expect fast and efficient transactions and 93% value trust and transparency in interactions. In this scenario, AI-based solutions offer hyper-personalization, high operational efficiency and security, providing the much-desired competitive differentiation in the market.?

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Brazil leads the new global race?

With innovations and new technologies, especially the application of AI, Brazil stands out as a leader in innovation in financial services, creating a relevant internationalization movement in the country, whether through strategies for global services, from the massive advance of banks launching international accounts and cards, to internationalization movements of national companies.?

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What are your perspectives on Brazil's role in the global transformation of financial services? What challenges and opportunities do you identify for the future of financial technology in the country??

Share your ideas and insights in the comments.