Credit Fintechs Enhance Open Finance, Drex, and Pix

With business models focused on disruption, credit fintechs are expanding their use of financial innovations to enhance their solutions and services. This is the conclusion of the 2024 Digital Credit Fintechs Research, conducted by the Brazilian Association of Digital Credit (ABCD) in partnership with PwC Brazil. According to the study, open finance is the main initiative that companies in the sector aim to strengthen in their operations, with a 38% adoption rate.

In second place is Drex, the digital currency from the Central Bank, which has already announced the second phase of its pilot project. Scheduled for launch in 2025, Drex will enable Brazilians to conduct various financial transactions securely and efficiently, utilizing digital assets and smart contracts, achieving 28% of mentions.

PIX, which has shown continuous growth since its launch, ranks third among the financial innovations that the digital credit sector plans to intensify, with 25% prominence in its offerings. With a steady increase in daily transaction volume and the introduction of automatic transactions in June next year, the instant payment system is already used by 58% of credit fintechs.

The research also indicates that fintechs are interested in exploring interoperability solutions, decentralized microcredit, digital asset marketplaces, and open insurance.

"The interest of fintechs in technological and financial innovations has always guided the sector's business, which has evolved during the digital transformation," says Claudia Amira, executive director of ABCD. "These innovations are crucial for reducing risks, lowering capital costs, and, most importantly, improving the customer experience, which is increasingly decisive for the segment," she adds.

Additionally, the 2024 Digital Credit Fintechs Research reveals that the sector maintained its growth in 2023, granting R$ 21.1 billion in credit, a 52% increase compared to the previous year. Between 2022 and 2023, the number of individual clients grew by 79%, totaling 46.7 million in Brazil and about 7 million abroad.

The complete research can be accessed at: [https://creditodigital.org.br/estudos/]