Credit applications via facial biometrics rises in Brazil, says startup

More than 5.2 million submissions were in September, according to Acesso Digital, a startup that provides validation technologies to different types of companies

Paulo Alencastro, co-founder of Acesso Digital. Photo: Courtesy
  • The startup has more than 400 corporate customers, including banks such as Itaú and Santander, fintechs like PicPay, and retailers like Magazine Luiza;
  • According to the startup’s data, fintechs were more demanded than traditional institutions during the COVID-19 pandemic.

According to the Brazilian SoftBank-backed startup Acesso Digital more than 5.2 million credit-granting submissions were made using facial biometrics in September in the country – the highest volume recorded since the beginning of the COVID-19 pandemic, in March. Since then, the use of this tool rose 59.30%. Data consider all customers of Acesso Digital that use AcessoBio, the startup’s technology that uses facial recognition to validate transactions.

The startup, created in 2007, has more than 400 corporate customers, including banks such as Itaú and Santander, fintechs like PicPay, and retailers like Magazine Luiza. For them, it offers digital identity authentication solutions such as facial recognition, remote admission, and electronic signature. During the pandemic, Acesso has also begun to work with telemedicine companies.

READ ALSO: Brazilian IDTech Acesso Digital received an investment of BRL 580 million that will be used in acquisitions

Also according to Acesso, credit concessions by fintechs skyrocketed in July. These startups received more than 1.5 million applications, while traditional financial institutions received more than 1.4 million. From March to September, the demand for fintechs grew 158.9%, while that of banks and lenders rose 73.39%.

More than 22,000 fraud attempts prevented

In September, the startup has also identified more than 22,000 fraud attempts through its tools – a fraud attempt every 51 seconds. Taking into account the six months of the pandemic, 144,946 fraud attempts were counted. When analyzed the most affected sectors, fraud attempts grew more among health companies (60.37%), followed by e-commerce websites (29.53%) and traditional financial institutions (17.59%). Fintechs and retailers, on the other hand, saw these attempts fall 46.42% and 14.86%, respectively.

READ ALSO: Large-scale instant payments adoption in Brazil may lead acquirers to lose up to BRL 13 billion a year

Remote hiring growth

Another interesting data comes from Acesso’s work with HR activities. According to the startup, remote employee admissions increased by 26.97% in September in Brazil, totaling 16,881 hirings. In March, the first month of the pandemic in Brazil, 10,839 admissions were made through Acesso’s tools.

READ ALSO: LastPass announces the milestone of 25 million global users; in Brazil demand grew due to the LGPD

In the last three months, retail is the leading contracting sector. There were 7,968 hirings in September alone, an increase of 17.31% over August. In health, hiring increased from 1,044 to 2,720, a variation of 160.54%. The industrial sector also registered growth of 98.50%, with 2,652 hirings.

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