THE emergency relief It had a huge effect on how Brazilians deal with money: the number of people do not have a bank account has plummeted over the past five months, for the sake of asking to open a digital social savings account accessible through the Caixa Tem app. The increase in Internet sales and the popularity of digital wallets are also playing an important role.
According to a study by AMI (Americas Market Intelligence) in partnership with Mastercard, the number of people without a bank account in Brazil fell 73% during the pandemic. This includes people without a bank account or fintech account prior to April 2020.
There are several reasons for this decline. Social distance, an essential metric during the COVID-19 pandemic, has stimulated e-commerce in Brazil and paid by proximity in physical stores. In addition, the federal government distributed more than R $ 200 billion in emergency aid to 67.2 million people between April and September, all through digital accounts.
It is estimated that, in 2019, There are 45 million Brazilians without banks – people who don’t have a bank account, or who have had but haven’t used it for more than six months. They have processed over R $ 800 billion per year.
Support withdrawal limit
Caixa has a job done including a bank. From May, beneficiaries of the R $ 600 emergency have had to wait several weeks to be able to withdraw or transfer money. After that, many people decided to use bank checks to deposit money into Nubank, PicPay, Mercado Pago, among other fintechs.
In May, less than 5% of transactions on Caixa Tem are done digitally and about 35% are withdrawn. In August, digital transactions hit 63%, compared with 15% for withdrawals – part of which was eventually transferred to other institutions.
Other Latin American countries have also seen declines in bank withdrawals due to social benefits in the new coronavirus pandemic. “Ingreso Solidario in Colombia and Ingreso Familiar deprisencia in Argentina have pushed users to create bank accounts to send money in support,” Mastercard said in a statement.
In more than five months, 40 million people in Latin America have created accounts with financial institutions, according to the study. The population without banks is down 18% in Argentina and 8% in Colombia.
The survey was conducted from June to August 2020 with “data released by governments and financial institutions, as well as interviews with 18 financial institutions, including banks and fintechs. tradition in four countries “.