Majority of Brazilians age 16-24 have signed up for digital banking – survey

RIO DE JANEIRO, BRAZIL – The digitalization of companies and services is a trend that has grown increasingly stronger, changing the ways of buying in different sectors.

Several of these changes are aimed at simplifying life for customers and gaining new audiences, as is the case of digital banks, which have taken their services to a new age group and gained more clients – all through the strategic use of the Internet and social networks.

As a result of innovations in the financial area, the concept of digital banking has evolved, going beyond a company with internet banking and offering digitalized services.

Digital banks are institutions that operate exclusively on the internet and remain in the digital environment, without having branches or other physical establishments.

New regulations have simplified the creation of digital financial institutions, contributing to the emergence of more such banks.

By opening an account at a digital bank, users can have access to the same services available at conventional banks, such as withdrawals and money transfers, access to a credit card, and various transactions, with fewer fees, less bureaucracy, and more investment options.

Adhesion of a younger public

Because of their strong presence on the internet and social networks, digital banks have reached a younger audience.

According to a survey conducted by IPEC commissioned by C6 Bank, in April this year, 51% of Brazilians aged between 16 and 24 were using the new digital financial companies more than the traditional ones for day-to-day operations, such as withdrawals, deposits and payments. The survey interviewed 2,000 people.

This strategy was designed by companies to ensure a larger growth in new clients, starting with a young age group, but that would eventually share the new discoveries of the financial world with family and older colleagues, also ensuring the entry of an older age group to the service.

In addition, the use of social networks and digital influencers for outreach were some of the contributing factors in reaching this audience.

The influence of the pandemic on financial practices

The pandemic has also influenced the popularity of digital banking. The convenience provided by this type of institution has made them a much sought-after option.

According to the study, 36% of respondents said that they had opened a digital bank account since the beginning of the pandemic. In addition, 78% have used their digital accounts more in this period, and 17% have not visited a physical bank branch for over a year because of the pandemic.

Among credit card users, digital banks are also the preferred option for a large share of Brazilians.

According to the data, 45.6% of consumers primarily use cards from digital institutions for payments and purchases, compared to 49.8% who continue to use cards from traditional banks.

The analysis of the survey data makes it clear that digitalization is an essential way for physical institutions to continue to secure new customers, as well as allowing convenience and ease in adverse times, such as the pandemic period.

This trend points to a future increasingly dominated by digital financial institutions, with consumers paying more attention to their financial lives and seeking ways to bypass bureaucracy.