How digital banks revolutionized the financial market in Brazil

Until very recently, thinking about the need to solve banking problems could send chills through anyone. However, this reality has changed with digital banks.

Much of this was provided by fintechs dedicated to the financial market, which were able to promote a true revolution in the country’s banking scenario and that is exactly what this article is about.

Read on to better understand how the revolution caused in the banking industry through digital access took place. Check out!

How was it in the past?

Traditional banks as we knew them in the past have always been very bureaucratic. Even a simple procedure like opening an account involved a lot of paperwork.

The most incredible thing is that these institutions depend on these exact same customers to make their profit.

However, it wasn’t hard to feel like asking for a favor, even if paying for it.

In fact, this was another controversial point: the charge for services considered essential, which were compulsorily charged to customers.

So much so that the Central Bank had to intervene and determine that a basic basket of services should be offered free of charge. But it doesn’t last that long.

In this way, as technology developed by leaps and bounds and became more robust, offering more security, the ideal scenario was formed for the emergence of digital banks.

With just a cell phone in hand, it became possible to open a bank account. With some bureaucracy, of course, but without papers: everything sent through photos taken with the camera of the cell phone itself.

This allowed for financial inclusion. Who previously did not have the famous “registration” approved in a traditional bank, could now have a bank account, without much effort.

And, as traditional banks resisted the idea of ​​digitalization, more market share was taken by digital banks, forming the ideal scenario for the revolution seen today.

Digital banking features

Undoubtedly, the great differential of digital banks for this great conquest of territory was the service provided to customers.

And that has several reasons.

no displacement

The first and most obvious of them is that it is no longer necessary to face traffic and inconvenience to go to an agency and be served. Just access the app on your cell phone.

And this can be done from anywhere in the world, it’s worth remembering. That way, it doesn’t matter if you’re traveling, at work or in the comfort of your own home.

Through the technological means available on the cell phone, you can get the service you need, something that was previously only possible by phone and only for high-income customers.


The second great differential for digital banks to revolutionize the banking scenario in Brazil (and in the world) was the offer of services.

In other words, the virtual service that does not require travel and is done with much more agility does not only solve customer problems. On the contrary.

Several operations can be done through the available application.

This means that to ask for a credit card limit increase, it is not necessary to go through bureaucratic processes (with a lot of paperwork involved).

Just make a request and in a few moments the answer is sent to the customer.

Bank statement? No, it is no longer necessary to go to a service terminal to have it in the palm of your hand.

Remember that device that is already in the palm of your hand (probably right now) called a cell phone? Well, digital banks offer your statement right there.

Financial investments

In addition, a range of more complex services can also be done through digital banks.

An example of this is financial investments.

Many products of different classes are offered to customers so that they can make the purchase through technology such as facial recognition.

In this way, investment funds, CDBs, Certificates of Real Estate and Agribusiness Receivables, among many other applications, can be easily contracted.

And in cases of more developed digital banks, even international financial applications can be made.

By this example it is possible to denote the degree of sophistication to which digital banks are reaching.

And it’s quite likely that they won’t stop there, because when it comes to digitalization, it’s the so-called “banks” that run after lost time…

Where should the market go in the next few years?

This is a pertinent question, since the subject of the article is exactly the revolution that the Brazilian (and global) banking system has been going through.

The problem with all this, that is, being in the midst of such profound changes, is not knowing exactly where we are located. Whether the changes are over or in progress.

In this article, we also address how digital banks emerged!

However, it is very unlikely that this modernization movement is nearing its end. On the contrary.

What the scenario shows is that more and more new solutions will emerge to make life easier for the end customer.

And this is such a strong movement that it involves the agents of the national financial system. In other words, these are profound changes.

open finance

A good example is the open financewhich has been gradually implemented in the country.

This shows that, at the end of the day, much of the competition in the market today involves the agility and modernization with which customers are served.

And this is as true for the rivalry between traditional banks and digital banks as it is for digital banks among themselves.

After all, we are talking about an open market.

However, digital banks have the advantage of being able to scale their services, as they have a strong technological base that allows remote service.

In this way, the probability is that whoever comes first will be the institution that focuses on the customer’s need.

And there is also another very important aspect: the experience he goes through.

All this will ultimately decide what the customer’s decision will be, because at this point he is in charge.

At this point, sophistication can reach such a point that individualized consultancy can be provided to consumers in order to guide their financial education.

With this, more money can be invested and goals can be achieved.

So the competition is open. And may the best win!

Did you like the text? Then comment below if you are part of a traditional bank or a digital bank! Your comment is very important to us!

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