In Latin America, Brazil leads in financial inclusion with 70% adoption of debit or credit cards. The country has recorded 55% card usage and an outstanding level of real-time payment usage.
This positive trend is contributed by the elimination of barriers to payment
infrastructure in the country.
These are the findings of a joint study between Nubank
and Mastercard, which highlighted the path individuals pursue toward financial
inclusion. The study, which is based on data from 3.6 million Nubank’s
customers, also highlighted the impact of financial inclusion and long-term economic
growth.
Unlocking Financial Inclusion
Speaking about the report, Cristina Junqueira, the Co-Founder and Chief Growth Officer of Nubank, mentioned: “Although access to financial services in and of itself has had a major impact, advancing the literacy journey on these topics brings greater and more sustainable benefits not only to individuals but to the community as a whole.”
.@Nubank and @Mastercard Exclusive Study Reveals Path to Advancing Beyond Access Toward Financial Health.Read more: https://t.co/2V1jHJKfVo#study #fintech #finance #FinancialIT
— Financial IT (@financialit_net) April 19, 2024
The study noted that Brazil has significantly
progressed in financial inclusion compared to other countries in Latin America. The World Bank Global
Findex shows that the country has 70% card penetration and a growing trend in
real-time payment usage.
Additionally, the report underscored the importance of
providing financial access to underserved populations. Remarkably, 60% of
Nubank’s customers transitioned from access to usage within 24 months,
irrespective of income level. Notably, prepaid cards have enabled most users
to access loan products and investments.
Addressing Barriers
However, despite this progress in financial inclusion, there
are barriers. While 84% of adults in Brazil have access to financial accounts,
many lack the necessary financial literacy to maximize the benefits. In order
to address this challenge, the study recommended active product usage and
financial education initiatives.
Mastercard’s Division President for Brazil, Marcelo
Tangioni, added: “The journey to financial security and health is
non-linear and full of obstacles – the only way to accelerate this journey is
by understanding the barriers and then building and deploying inclusive digital
solutions.”
“Through this study, we have clear evidence that
frequent, consistent, and responsible use of digital payment tools is critical
to building trust and putting people on a path towards a more sustainable
financial health.”
Last year, Brazil’s largest cryptocurrency exchange, Mercado Bitcoin, secured a payment institution license from the country’s central bank. This approval allows the exchange to operate as a payment institution and electronic money issuer. As a licensed payments provider, the exchange
offers a range of digital banking services.
This article was written by Jared Kirui at www.financemagnates.com.
