- The survey showed that 84% of neobanks’ clients also have accounts in traditional banks;
- For 33%, face to face service is still a reason to keep a traditional bank account.
With fintechs on the rise in Brazil, a survey conducted by SPC Brazil (Credit protection service) and CNDL (National Confederation of Store Managers) found out that 40% of Brazilian consumers already used at least one credit card from a fintech during the past year. Information is from the Brazilian newspaper Folha.
Among those who are fintechs’ clients, the most used services are bill payments (16%), balance checking (14%), cash withdrawals (11%), debit card payments (11%), and money transfer (11%). 19% of the respondents also claimed to have requested at least one personal loan from these startups, and from these, 35% did so for paying other debts.
But even with growing importance among consumers’ preferences, fintechs are not entirely replacing banks and traditional institutions – at least not anytime soon: 84% of neobanks’ clients also have accounts in traditional banks. And the reasons are mostly related to loyalty and face to face service, as 38% claimed to keep their accounts due to the long-standing relation with such banks, and, therefore, easiness of getting credit lines. As for the face to face service, 33% also stressed out this as a reason.
With 924 respondents from all Brazilian regions and social classes, although the results still don’t show that fintechs are replacing banks, it already discloses how these institutions are gaining ground in the country, as 55% of those consumers who use both services prefer the digital banks, 25% claimed not to have any preference, and 20% affirmed to prefer traditional institutions rather than fintechs.