August 06, 20 - 10:26 am - LABS

Brazilians’ use of digital banking increased by 59% amid pandemic

During the Covid-19 pandemic, Brazilians increased the use of digital bank channels by 59% during the months of May and June, according to a study by the Future Consumer Index, conducted by Ernst & Young Global Limited (EY). According to the report, only 5% will continue with their banking relationship in the physical environment.

The survey points out that at a time when personal contacts can lead to contamination by coronavirus, consumers started to use less cash: 46% said they had increased the use of digital payments, against only 7% who maintained the use of physical money.

SCA implementation delays in Europe
Image: Shutterstock

The acceleration of digitalization comes mainly from the younger and higher-income public, as shown in the survey, carried out during the months of May and June this year with 1,112 consumers. The more digital lifestyle has been driven by the younger generations – the so-called “digital natives”: Millennials and Generation Z use less money than Baby Boomers and are more active in adopting new means of payment.

According to the report, digital natives find it easier and more willing to try new technologies. At the same time, we can assume that the higher the disposable income, the greater the possibility of purchasing smartphones, wearables and other devices already equipped with contactless payment methods. The start of the operation of the Brazilian Central Bank payment system, PIX, at the end of 2020, will offer an extra stimulus to the use of digital payments. Especially among the low-income population, the possibility of using payment links makes the digitalization of the financial system more palpable.

According to Brazilian state-owned bank Banco do Brasil, it already has 5.1 million “digital natives” awareness, that is, those who started their relationship with the bank through digital channels. The number was up 69.1% in 12 months and 13.2% in the quarter. Of these customers, 81.4% are up to 40 years old, reports Valor Econômico.