Selic high is challenge and opportunity for retail to innovate in credit

The consecutive rise in the Selic rate, which is now at 13.25% in year 15% according to the Central Bank Focus Report 25%, which is now at 13.25% in year 151, with a projection of reaching 15% according to the Central Bank Focus Report 1ST: IT is a curious phenomenon: it represents a challenge and also an opportunity for retail. This situation gives the retail the opportunity to offer good credit limit options to those not covered by traditional lines, regardless of the value of the needs, whether they are still higher, the needs, or the needs, the higher, the needs, the needs will continue to have the needs, the needs of the needs of the needs of the needs, the needs of the needs of the needs of the people or the needs of the needs.

Some factors corroborate this role of retail: according to Febraban, the estimated growth in credit stock for this year should be lower than in 2024, staying around 9%. In addition, the Consumer Confidence Index reached the lowest number since February 2023, reaching 86.2 points, according to the FGV IBRE. And in an economic scenario such as what we are living now, which I exemplified above, it is common for items that are not of first necessity, such as clothes and shoes, to be in second plan and the priority of spending on food and fuel.

So, if the consumer goes to a clothing store, he may need a credit line that does not compromise the limit of the flag card he has with the bank to buy a piece, because this amount of the limit is reserved for purchases of essential items, such as those mentioned above. In this scenario, it creates the need to provide a new credit, whether for the customer to buy items of clothing or even a TV or refrigerator, which are also needed according to each context.

Naturally, this customer will use the credit line offered by retailers that have this feature. In this way, a very important link of trust relationship between the consumer and retail is created, strengthened by a relationship previously developed through the offer of other retail services, such as Private Label cards and the CDC. In this context, the window of opportunity is very large, because retail becomes one of the main channels of granting credit to the final consumer, since financial institutions do not have consumer goods for sale or a counter for retail, characteristic of retail.

Retail may even have the challenge of dealing with consumer default, but still it needs to keep its sales growing. So, he prefers to take this risk and make the sale to the customer, increasing the purchase ticket, than to miss the opportunity. At the same time, the retailer knows that he should not make mistakes when selecting customers able to have a line of credit or not, so he must rely on good CRM tools, credit management and collection to take care of the entire customer lifecycle, evaluating what is the type of consumption he makes; what value, on average, he usually spends; what is the profile of that consumer 0 is the profile of that consumer to increase in such information in the retail sector will help the consumer to make it in the consumer 2.

In addition, retail has a very important differential when compared to financial institutions: in situations of default, the policies according to are much more friendly, since the sector is concerned with delighting the customer and bringing him back to the store so that he buys more, because he does not want to lose him. Already the relationship of the consumer with banks, often, is only economic. This exchange is part of the DNA of retail, because even in adverse situations, customer loyalty is necessary. Amid this opportunity, retail needs to be very effective, fast, intelligent and cautious.

A very efficient payment model that the retailer can offer as an alternative to the credit card is the CDC Digital/BNPL (Buy Now, Pay Later), which can be very well used for the acquisition of durable goods, as it works like the old card. There is a limit in which the customer can buy on a recurring basis as many times as he wants, but at the same time it gives the possibility of approving a credit limit per purchase, in a specific way.

Today, as the forms of payment are simplified, this is a product that comes in handy, since it has undergone a digital transformation: transactions are tokenized and facial biometrics, being possible to pay the installments with online ticket within the application or Pix etc. These credit modalities, which I mentioned earlier, more than credit access tools, function as important products capable of promoting assertive campaigns and ensuring the offer of products directed especially to the profile of each customer.

In addition, they are very strategic instruments to activate customers who are already at the base of the retailer, but have not made purchases, that is, they are inactive. So, there needs to be a reactivation of the user base and old consumers with targeted offers, based on new experiences and a frictionless journey for the customer at all stages, from the activation of it to the payment of invoices.

Another trend that, based on my expertise, will stand out this year is tokenization, including offline token payment, outside the logged environment of the application. With the proper security authentications, I realize that this type of transaction will also be responsible for reducing friction at the time of purchase at retail. I also highlight the consolidation of Pix, which reached 63.51 billion transactions in 2024, according to BACEN, but which is an important payment schedule for the retailer and the end customer, because it brings advantages for both sides.

For retail, money enters the account immediately and is not stuck in financial institutions or credit intermediaries. For the end customer, who needs credit to buy again, it is possible to have the benefits of the store card, the discount on products, but make the payment of the invoice by Pix, either in the application or in the totem of the establishment, and thus have the limit reestablished in a fraction of seconds. For both sides, the journey is facilitated. In this way, I realize that retail takes the lead in the scenario of credit granting and in the relationship with the customer. Thus, he is responsible for even starring the digital transformations that occur in the sector of means of payment, the customer experience and purchase.