Digital banking has gained a lot of space here in Brazil, but do you know why?
After the Covid-19 pandemic, many businesses closed and even went bankrupt, for a period, chaos settled over the Brazilian territory and the country lived many days of uncertainty and challenges. With the crisis brought by the pandemic, default rates rose, credit interest rates also went up, and people, especially those from lower classes, were increasingly running out of credit options. The bureaucracy of having to leave home to resolve some financial issue at the bank branch made the situation even more complicated, as many people were prevented from leaving their homes.
So, in the face of this rather scary scenario in the country, entrepreneurs saw one (or many) gaps that fit a new business: digital banks! The fintechs emerged and gained strength during the pandemic period precisely because they offered what traditional banks could not: lower credit rates, and more ease in time to solve anything without leaving home, just by accessing an application, which in turn was complete and with several functions.
Because of the ease brought by digital banking, people have embraced this new model of banking. And, it worked! Traditional banks, for a while, were losing ground among customers, and even had to rethink their strategies and redesign their apps, and completely change the way they communicated with their customers. Of course, since it was the digital banks that provided the BaaS technology so that the digital banks could actually function as financial institutions, they were never going to lose the space they had gained over many years in the financial sector. However, customers' preference for digital banking has caused traditional banks to rethink their operations.
This movement transformed the entire financial and banking industry: banks were almost forced to embrace Digital Transformation, while new fintechs and digital banks grew and gained more and more space among the Brazilian population. According to the survey "Digital Onboarding Ranking 2021", 75% of Brazilians prioritize opening accounts in digital banks, while 75.8% of Brazilians would trade traditional banks for digital banks because of the easier bureaucracy.
As an efficient and innovative answer to meet the demands of the banking industry amidst Digital Transformationthe Banking as a Service (BaaS) solution empowers traditional banks and fintechs to adopt agile and scalable digital models, strengthening their market position and meeting customers' growing expectations.
By adopting the GWCloud solution, banks can rely on a complete and integrated platform that offers essential features for digital banking, such as online account opening, payment processing, transaction management and customer engagement services. With an intuitive and user-friendly interface, users have the convenience of performing all their financial activities from the comfort of their homes, using mobile applications or web platforms.
In addition, the solution enables the reduction of operational and bureaucratic costs, thanks to the automation of processes and the elimination of the need to physically travel to the bank branches. This brings greater financial accessibility to the lower strata of the population, who often face difficulties in obtaining credit or accessing traditional financial services.