Fintechs are gaining prominence in the Brazilian financial market, reducing the distance in terms of trust compared to traditional banks. According to the RADAR Febraban survey, published in March 2023 by the Brazilian Federation of Banks (Febraban) in partnership with the Institute of Social Research, Políticas e Económicas (IPESPE), fintechs have already gained the trust of 57% of Brazilians, an expressive growth compared to 2021, when this rate was only 49%. Furthermore, the percentage of distrust remains the same for fintechs and traditional banks, with 32% of respondents indicating insecurity in the services offered
This gradual increase in confidence is driven by the growing investment of fintechs in cutting-edge technologies to strengthen digital security. Fintechs are challenging the traditional banking model by proactively investing in digital security and transparency, at the same time as they facilitate Brazilians' access to differentiated credit portfolios, affirms Leonardo Aguiar, head of commercial at EmCash, a pioneering Fintech As A Service in the democratization of credit in Brazil. Digital banks are showing the financial market that it is possible to combine innovation with security, offering customers a more dynamic and secure experience
Aguiar comments that the role of technology in the creation of differentiated credit cards, especially in the P2P (Peer-to-Peer) model, it is one of the competitive differentiators, as it allows direct loans between individuals and legal entities, without traditional intermediaries. This innovative approach not only ensures high profitability and lower risk for investors, but also promotes the confidence of borrowers, allowing more people to access differentiated conditions that overcome the limitations imposed by traditional banks. The intelligent use of data, the insertion in Open Finance and AI provide inputs for us to create robust financial modeling. The use of alternative data helps us understand short-term repayment capacity, medium and long term of the borrowers, avoiding over-indebtedness and, consequently, the default. As we move away from the obvious and access new technologies, we managed to create disruptive credit policies that offer greater security and transparency, fundamentals to build Brazilian confidence in our financial model, explain Aguiar
With these innovations, fintechs are better equipped to identify and mitigate security threats and default risks. The adoption of artificial intelligence and automation aids in predictive analysis, offering a quicker response to potential threats and ensuring a safer experience for users. The regulatory support provided by the LGPD in Brazil and the GDPR in Europe also strengthens the sector, allowing fintechs to align innovation with compliance and data protection
By offering this combination of security, transparency and innovation, Brazilian fintechs continue to expand their space in the financial sector, promoting trust and protection for users in an increasingly digital landscape
"In EmCash, we have felt the growing confidence of major partners, like MRV, in our ability to drive business and facilitate access to credit more efficiently for end customers. This partnership allows more people to achieve the dream of acquiring a property, since our customized credit solution makes the purchasing process more accessible. With MRV, we work to reduce financial barriers, what generates not only a direct impact on sales volume, but also helps to transform the real estate buying experience in Brazil. This is more than a business relationship; it is a commitment to the realization of dreams and to the strengthening of the real estate sector, says Aguiar
