A recent study, conducted by Nubank, a Brazilian neobank, and the payment giant Mastercard, has revealed that approximately 84% of adults in Brazil have access to financial accounts. This finding indicates that the region is poised to improve its overall financial health. The study also highlighted the potential for significant economic and social impact by providing access to financial services for the unbanked and underbanked populations.
Brazil is leading the way in Latin America with 70% card penetration, 55% card usage, and a high level of real-time payment usage. The study reported that 60% of Nubank’s customers transitioned from financial access to usage within 24 months, with 40% achieving this milestone within 12 months, regardless of their income level.
Despite the widespread access to financial accounts, the study emphasized that many individuals lack the necessary financial education to progress along the inclusion journey. According to Cristina Junqueira, the co-founder and chief growth officer at Nubank, financial education has always been a fundamental aspect of the company’s mission. She stressed the importance of empowering consumers to make informed financial decisions and to have control over their money.
Moreover, Nubank and Mastercard have suggested that active financial product usage could increase familiarity and trust, leading to accelerated financial inclusion. The study found that making payments with prepaid cards can serve as a stepping stone to accessing advanced financial products. A significant number of individuals who used a prepaid card as their first financial product eventually progressed to accessing loan products and making investments.
Marcelo Tangioni, the division president for Brazil at Mastercard, also underscored the non-linear nature of the journey to financial security and health. He emphasized the importance of understanding the barriers to financial inclusion and developing inclusive digital solutions. Tangioni highlighted the critical role of frequent, consistent, and responsible use of digital payment tools in building trust and guiding individuals towards sustainable financial health.
In conclusion, the study’s findings point towards the significance of providing digital payment tools accompanied by financial education, promoting responsible use of credit, and investing in micro, small, and medium enterprises. These efforts are crucial in bringing more people into the digital economy and accelerating their journey towards long-term financial health. By addressing the barriers to financial inclusion and empowering individuals with the necessary knowledge and tools, Mastercard and Nubank are aiming to foster a more financially healthy and inclusive society in Brazil.