Skip to content

Banking in Brazil Current Behavior Changes Analysis

Ongoing Behavior Changes

The Brazilian banking sector is undergoing significant and ongoing behavior changes among both its B2C (Individuals) and B2B (Corporations, Institutions, Government Entities, Merchants, Fintechs, and Payment Institutions) customer segments during 2024 and extending into 2025. These shifts are fundamentally altering relationships and impacting demand across the value chain.

A primary driver of these changes is the accelerating digital transformation, fueled by technological advancements and regulatory initiatives like Pix and Open Finance. Individuals are increasingly embracing digital banking solutions, including mobile banking applications and online platforms. This is reflected in the growing adoption of digital payment methods, most notably Pix, which has become a dominant force in both retail and business transactions due to its instantaneity, 24/7 availability, and often lower costs compared to traditional methods. Contactless payments using cards and mobile phones are also seeing increased usage. This shift towards digital channels is changing how customers interact with banks, prioritizing convenience, speed, and accessibility.

Customer expectations are also evolving, with a greater demand for personalized and convenient banking services. Customers expect seamless omnichannel experiences and immediate service delivery. This is pushing banks to leverage data analytics and AI to tailor financial products and enhance the customer experience. The rise of neobanks and fintechs has played a significant role in shaping these expectations by offering user-friendly digital interfaces and innovative products.

In the lending space, while the overall credit market continues to show growth, particularly for individuals and companies, there are shifts in behavior influenced by economic conditions and technological advancements. Higher interest rates aimed at curbing inflation could potentially deter borrowing for some. However, a resilient labor market and fiscal policy have supported domestic demand and credit recovery. There is also growing interest in alternative credit solutions and the use of alternative data for credit scoring, partly driven by fintechs and Open Finance. The Buy Now, Pay Later (BNPL) market is experiencing robust growth, indicating a changing consumer preference for installment-based payments, particularly among the underbanked population.

Investment behavior among individuals is also changing, with a significant increase in the volume of individual investments in 2024 [Anbima, 2025 #4, Anbima, 2025 #6]. While fixed income instruments remain popular, there's a growing interest in various investment products [Anbima, 2025 #6]. Regulatory changes and the modernization of the investment fund industry are also influencing investor behavior and product offerings.

For businesses, the adoption of digital payment solutions for B2B transactions is increasing. The capital markets saw record issuances in 2024, indicating strong corporate demand for funding through debt and equity markets [Anbima, 2025 #7]. Businesses are also seeking more efficient and integrated payment systems for managing their financial flows. The expansion of e-commerce also drives the demand for digital payment services and can lead to the formalization of MSMEs and their greater access to financial services.

Open Finance is a critical behavioral change enabler, allowing for the consent-based sharing of financial data between institutions. This is expected to increase competition, foster innovation, and enable more personalized financial services and potentially expand credit access for individuals and MSMEs. The implementation of Open Finance is influencing how banks and fintechs interact, promoting collaboration alongside competition.

The increasing emphasis on ESG factors globally and within Brazil is also starting to influence behavior, with potential impacts on investment decisions and corporate financing, including the creation of a regulated Brazilian carbon market.

In summary, the ongoing behavior changes are characterized by a strong acceleration towards digital adoption for transactions and interactions, evolving customer expectations for personalized and seamless experiences, dynamic shifts in credit and investment preferences influenced by economic factors and new technologies, and the transformative impact of regulatory initiatives like Pix and Open Finance on data sharing and collaboration within the value chain.

Impact of These Changes on the Value Chain

The described behavior changes have a profound impact on the Brazilian banking value chain:

Value Chain Step Impact of Behavior Changes
Fundraising/Captation Increased competition for retail deposits from digital banks offering attractive digital-first experiences and potentially lower fees. Growth in individual investments changes the mix of funding sources, requiring banks to offer a wider range of investment products to retain funds. Open Finance can facilitate access to customer data for more targeted product offerings. [Anbima, 2025 #4, Anbima, 2025 #6, 17, 35]
Financial Intermediation/Lending Growing demand for digital and faster credit products. Increased use of alternative data and technology for credit scoring, potentially expanding access to credit for new segments. Competition from fintechs in specific lending niches. Changes in macroeconomic conditions influence credit demand and risk assessment. BNPL growth impacts traditional credit product usage. Open Finance facilitates more informed lending decisions through data sharing.
Transaction Processing & Payments Massive shift towards Pix and digital payments, leading to a decline in traditional methods like cash and potentially impacting debit card usage. Pressure on traditional fee income from card transactions (MDR) due to Pix's low cost. Increased need for investment in robust, secure, and instant payment infrastructure. New opportunities in contactless payments and embedded finance within payment flows.
Investment Banking & Capital Markets Increased corporate demand for capital markets services driven by economic activity and investment needs. Growth in specific instruments like debentures. Potential for digitalization of capital markets processes. Evolving investor behavior (individuals and institutions) influences the types of securities and funds in demand. [Anbima, 2025 #7, 24]
Asset Management & Wealth Management Growing volume of individual investments requiring more sophisticated digital platforms and personalized advisory services. Increased demand for diverse investment products, including alternative assets. Competition from digital investment platforms. Open Finance enables a more holistic view of customer finances for better wealth management. [Anbima, 2025 #4, Anbima, 2025 #6, 22, 20]
Other Financial Services Increased digitalization of product distribution (e.g., bancassurance through digital channels). Demand for integrated financial solutions, potentially bundling banking, insurance, and pension products. Leveraging existing digital relationships to cross-sell complementary services.
Support Activities Significant increase in the need for investment in technology and IT infrastructure to support digital channels, data analytics, AI, and compliance with new regulations (Open Finance, Pix, DREX, LGPD). Greater focus on cybersecurity and fraud prevention in digital environments. Need for talent skilled in digital technologies, data science, and compliance. Adapting legal and compliance frameworks to new digital products and services. [FEBRABAN, 2025 #2, 3, 27, 17]

References

  1. Panorama Abecs. (2024, August 7). Cartões movimentam R$ 2 trilhões no primeiro semestre de 2024.
  2. ResearchAndMarkets.com. (2025, February 28). Brazil Buy Now Pay Later Business Report 2025: BNPL Payments to Grow by 14% to Reach $4.66 Billion this Year with Cleo, ADDI, and DiniePay Leading - Investment Opportunities to 2030.
  3. Brazil Banking Market Report- Q4 2024. (2025, March 25).
  4. BBVA Research. (2024, December 4). Brazil Economic Outlook. December 2024.
  5. On Credit: Trends and risks in the credit market in 2025. (2025, March 25).
  6. GlobeNewswire. (2025, March 5). Latin America Digital Payments Market Report 2025.
  7. IMARC Group. (2024). Brazil Mobile Payment Market Size, Share and Report, 2033.
  8. CEIC Data. (2024, December 31). Brazil Domestic Credit Growth, 2002 – 2025.
  9. Nium LATAM. (2025, February 18). Is Brazil Ready for a Digital Cross-Border Payments Boom? Q&A with Christina Hutchinson, Nium LATAM General Manager.
  10. Trading Economics. (2025, April 30). Brazil's Lending Rises Moderately in March.
  11. PYMNTS.com. (2025, May 7). Cashless Wave Sweeps Latin America Amid Mobile, FinTech Boom.
  12. Brazil: Two sides to every coin. (2025, February 11).
  13. Brazil Online Banking Market Report- Q4 2024. (2025, March 26).
  14. Galileo. (2024, June 17). 3 Ways Brazilian Banks Can Deliver Customer-Centric Banking in 2024.
  15. PR Wire India. (2025, April 11). Brazil Retail Banking Market Size Is Likely To Reach a Valuation of Around 570.58 Billion by 2035.
  16. Ciklum. (2024, December 10). Banking Experience 2025: Trends Shaping Customer Expectations.
  17. IMARC Group. (2024). Brazil Retail Banking Market Size, Share and Forecast 2033.
  18. Zendesk. (2025, February 24). 5 banking customer experience trends to consider for 2025.
  19. IMARC Group. (2024). Brazil Retail Banking Market Size, Share and Forecast 2033.
  20. Capgemini. (2025, January 1). Capgemini Financial Services Top Trends 2025.
  21. QED Investors. (2024, December 16). Top 10 trends for LatAm fintech in 2025.
  22. EY. (2025, January 28). 2025 Global Wealth and Asset Management Outlook | EY - Brazil.
  23. IMF eLibrary. (2024, July 11). Brazil: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Brazil in: IMF Staff Country Reports Volume 2024 Issue 209 (2024).
  24. Chambers and Partners. (2025, February 6). Investment Funds 2025 - Brazil - Global Practice Guides.
  25. OECD. (2024, December 9). Latin American Economic Outlook 2024: Brazil.
  26. Chambers and Partners. (2024, October 17). Alternative Funds 2024 - Brazil | Global Practice Guides.
  27. ICLG.com. (2024, May 31). Digital Business Laws and Regulations Report 2024-2025 Brazil.
  28. EY. (2023, December 4). How financial firms can prepare for the 2024 regulatory landscape | EY - Brazil.
  29. PwC Luxembourg. (2024, October 9). Open Finance: Genesis of a Revolution.
  30. fsca. (2024, March 10). open finance – fsca policy recommendations - march 2024.
  31. Capgemini. Velocity, meet value.
  32. IMF eLibrary. (2024, July 8). 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Brazil.
  33. Electrum Blog. (2024, May 21). Lessons from PIX and UPI: Keys to an Inspirational PayShap Story.
  34. Portal Gov.br. (2024, October 18). Finance Minister: Brazil ready to reattain investment grade by 2026.
  35. CGAP. (2024, March 10). Open Finance Can Reduce Financial Inclusion Gaps: Here's How.
  36. IFC. (2025, April 24). IFC and Magalu partner to strengthen digital transformation in Brazil.
  37. McKinsey & Company. (2025, February 28). Brazil's economy is stable, but consumers are feeling down.
  38. McKinsey & Company. (2025, May 7). Pursuing insurance growth in Latin America.