The consecutive increase in the Selic rate, that is now at 13,25% per year – with a projection of reaching 15% according to the Central Bank's Focus Report – reveals a curious phenomenon: it represents a challenge and also an opportunity for retail. This is because, with the increase in the basic interest rate, it is natural for credit to become more expensive and, therefore, more restricted to only a part of the population; simultaneously, this situation gives retail the opportunity to get ahead by being the one to offer good credit limit options to those not covered by traditional lines. After all, regardless of the interest rates, of inflation or the rise of the dollar, people will continue to need their needs met, whether they are the most basic or not
Some factors contribute to this prominence of retail: according to Febraban, the estimated growth in credit stock for this year is expected to be lower than in 2024, staying around 9%. Furthermore, The Consumer Confidence Index reached its lowest number since February 2023, reaching 86,2 points, according to FGV IBRE. AND, in an economic scenario like the one we are experiencing now, that I exemplified above, it is common for items that are not essential, like clothes and shoes, stay in the background and the priority of expenses should be on food, medications and fuel, for example
So, if the consumer goes to a clothing store, he may need a line of credit that does not compromise the limit of the credit card he has with the bank to buy a part, because this amount of the limit is reserved for the purchase of essential items, as mentioned earlier. In this scenario, the need for the provision of a new credit arises, whether for the customer to buy clothing items or even a TV or refrigerator, which are also necessary according to each context
Naturally, this client will use the credit line offered by retailers that have this resource. In this way, a very important bond of trust is created between the consumer and retail, strengthened by a relationship developed earlier through the offering of other retail services, how Private Label cards and the CDC. In this context, the window of opportunities is quite large, because retail becomes one of the main channels for granting credit to the end consumer, given that financial institutions do not have consumer goods for sale or a counter for customer relations, characteristics of retail
Retail may even face the challenge of dealing with consumer default, but still he needs to keep his sales growing. So, he prefers to take that risk and make the sale to the customer, increasing the purchase ticket, than losing the opportunity. At the same time, the retailer knows that he should not make mistakes in selecting customers who are eligible to have a credit line or not, therefore it should rely on good CRM tools, of credit management and collection to take care of the entire customer lifecycle, evaluating what type of consumption he engages in; what value, on average, he usually spends; what is the profile of that consumer etc – this information will help the retailer both in approval and in increasing the limit so that these customers can make purchases in their stores. And this is one of the great opportunities in the face of the challenge that the sector will have in 2025
Furthermore, retail has a very important differential when compared to financial institutions: in situations of default, the settlement policies are much friendlier, since the sector is concerned with delighting the customer and bringing them back to the store to buy more, because she doesn't want to lose him. The relationship between the consumer and the banks, many times, it is just economic. This exchange is part of the DNA of retail, because even in adverse situations, customer loyalty is necessary. In the midst of this opportunity, retail needs to be very effective, fast, intelligent and cautious
Um modelo de pagamento bastante eficiente que o varejista pode oferecer como alternativa ao cartão de crédito é o CDC Digital/BNPL (Buy Now, Pay Later, which can be very well used for the acquisition of durable goods, because it works like the old booklet. There's a limit to how many times a customer can buy on a recurring basis., but at the same time it gives the possibility of approving a credit limit per purchase, in a specific way
Today, how 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 by facial biometrics, being able to pay the installments with online ticket within the app or Pix etc.. These types of credit, I mentioned earlier., more than credit access tools, function as important products capable of promoting assertive campaigns and ensuring the offer of products specifically targeted to the profile of each customer
Furthermore, are quite strategic tools to activate customers who are already in the retailer's base, But they haven't made any purchases., that is, are inactive. So, There needs to be a reactivation of the user base and of old consumers with targeted offers, based on new experiences and a frictionless journey for the customer at all stages, from its activation to the payment of invoices
Another trend that, Based on my expertise,, What's going to stand out this year is tokenization., including offline token payment, outside the logged in 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 retail purchase.. I would also like to highlight the consolidation of Pix, which reached 63,51 billion transactions by 2024, according to BACEN, But it's an important payment schedule for the retailer and the end customer., Because it's mutually beneficial.
For retail, the money enters the account immediately and is not stuck in financial institutions or credit intermediaries. For the end customer, who needs the credit to buy again, is it possible to have the benefits of the store card, of the discount on products, But to pay the bill for Pix, either in the application or in the totem of the establishment, and thus have the limit re-established in a fraction of a second. To both sides, The journey is made easy.. In this way, I realize that retail takes the lead in the lending landscape and in the relationship with the customer.. Thus, It is also responsible for spearheading the digital transformations taking place in the payment sector., purchase journey and customer experience
