The Brazilian banking sector is highly consolidated, with a handful of large banks controlling a significant market share. Product ownership rates are high, particularly for current and savings accounts. Both younger and older age groups use branches often. Internet penetration in Brazil is low, and hence providers need to maintain a multi-channel approach or focus on specific geographical areas in the country.
Consumers are generally conservative in their choice of provider, with a bias towards those with which they have an existing relationship. With new regulations being introduced by the Central Bank of Brazil, the market has opened up to new entrants to encourage greater competition within the sector.
- The top three banks hold 70% of the market. Two of the top three providers (Banco do Brasil and Itaú) have both recorded notable increases over the last 12 months, while Caixa Economica Federal saw its market share decline over the same period. New entrants such as NuBank and Banco Original have all launched their current account propositions. Competition has boosted customer mobility and made it easier for new entrants to acquire customers.
- Branch and online dominate channel usage in the Brazil. The next step for banks is to upgrade their digital channels with chatbots and other functionality to help with query resolution. Overall, online is the preferred channel and satisfaction with mobile is highest. However, younger consumers use branches more often than older account holders.
- Reputation is the key driver of provider choice, although branch presence is also important, particularly for younger borrowers. Overall, Brazilian consumers are careful and conservative, opting for traditional banks with a reputation for financial stability. All these factors combined point towards a need for familiarity in banking providers.
This brief reviews the retail banking sector in Brazil, with a particular focus upon the current account, savings, mortgage, and personal loans markets. It includes both market-level data and insight from our global Retail Banking Insight Survey.
The report offers insight into:
- How consumers in Brazil take out and use their financial products, and how this has changed in recent years.
- Which providers dominate the current account, savings, mortgage, and loan markets, and what factors persuaded their customers to choose them.
- The extent to which consumers are using online and mobile channels to research, take out, and use their financial products.
Reasons to Buy
- Future proof your strategy with market sizing, forecasts, and analysis of key developments currently affecting Brazil’s retail banking sector.
- Target consumers with inside knowledge of their true behaviors and attitudes, with detailed analysis from our proprietary insight.
- Learn about the impact that new entrants and distribution channels will have on the market.
2. Current Accounts
3. Channel Use
4. Savings Accounts
6. Personal Loans
7. Bank Infrastructure & Regulation