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Brazil Leading the Way in Mobile Banking – Is This the Blueprint for Others to Follow?

Referred to at the start of 2017 as “the hottest big emerging market right now” by Forbes, Brazil is a nation on the up.

2016 saw inflation drop by almost half in the space of a year, which prompted lower interest rates, and while the emergence of Jair Bolsonaro as President at the start of 2019 has been controversial, it hasn’t derailed the progress of Latin America’s largest economy.

Brazilians have also been leading the way when it comes to embracing technology, including mobile banking.

Digital Financial Transactions Up by 30%

According to a report carried out by Deloitte in conjunction with the Brazilian Banking Federation, almost half of all banking transactions carried out in the past year were conducted via mobile devices.

In less than five years we’ve seen the percentage of financial transactions carried out via mobile device or computer rise from 10% in 2014, to 40% in 2018, which represents nothing less than a meteoric rise.

It has long been suggested that opening up mainstream banking facilities to mobile will revolutionize the industry, providing access to people who would not be involved otherwise.

“The ease of being able to solve financial issues by just using the cell phone is a key point of the growth,” commented director of technology and banking automation at the Brazilian Banking Federation, Gustavo Fosse.

The opening of digital bank accounts rose from 1.6 million in 2017 to 2.5 million the following year, seeing some 862 million transactions carried out via the medium.

The best is yet to come. And, mobile banking, as we know it, is just being the beginning.

“The fact that we’re managing to put banking facilities into the hands of people who wouldn’t have had access not that long ago is fantastic, but it’s only the first step,” claimed CEO of ATRONOCOM, Thomas Koller.

Cryptocurrency isn’t Going Away

Koller’s startup offers much of the same services that traditional mobile banking facilities do but has integrated compatibility with cryptocurrency and a secure high level private messaging system.

“I think we all know now that cryptocurrency isn’t going away, it’s here to stay and with each passing day is becoming more and more a part of the fabric of finance as we know it,” continued Koller.

“We can either embrace it, recognize the benefits, and make it work for us, or we can stand on the sidelines as the parade passes us by.”

Brazil has made considerable strides in regulating cryptocurrency, with new laws coming into effect in August that will see legal entities, individuals or brokerage firms involved in the crypto industry required to register their activities with the Brazilian government.

As one of the infamous BRIC countries, alongside China, India, and Russia, Brazil may be riding a wave as one of the largest economies in the world, but it looks as though it’s stepping up to the plate as far as technology is concerned as well.

While many nations view cryptocurrency with suspicion and doubt, Brazil has opened its doors, and while regulation goes against what many crypto fanatics stand for, it’s a positive step that other governments haven’t always been brave enough to take.