Aula 01: Os Bancos na Era Digital - Concurso Banco do Brasil 2026

Hey everyone, welcome to another lesson

for the Banco do Brasil exam. Just a

reminder: if you want access to the

complete course with the PDF booklet containing

all the slides I use in class, a

summary material for

review, and a bank of

commented questions, the first link is in the

description. Also, please

like this video and I wish you

all an excellent lesson.

We're going to study banks in the

digital age, working a bit on this

digitalization happening in the

financial market. But first, just to

understand: the digital age is

this period characterized by the

predominance of digital technologies

in society. So, a

general concept of the digital age: it's marked by the

extensive use of computers,

electronic devices,

communication networks, and technologies to process,

store, and transmit information. And

I can list some

characteristics associated with the digital age,

which we'll see as

we go through the lesson, that

these characteristics, these points,

will also apply within the

banking context, within the

financial market. The internet is one of the

main points because it's what

connects people,

connects devices. These

devices I have here are...

Present in the digital age are smartphones,

computers, tablets, and a series of

other devices that communicate

and enable this digital environment.

Social networks are also something that has emerged

in recent years and has revolutionized the

way people communicate.

Before, communication had to

happen in person, or with

more advanced technology, perhaps by

calling or sending messages.

Now it's very easy to talk to

someone regardless of

their location, just by using social networks

and messaging apps.

Now we come to two

points that will be discussed extensively throughout

this lesson: Big

Data, which is the collection and analysis of large

volumes of data that drive

decision-making in various sectors. In other words,

within the digital age, a

characteristic I have is this

abundant collection of data. That is, I

will have data relating to people.

Let's think about people; I will have

data on people being

stored, and this will trace

individual characteristics of each

person. This is very important in a financial context, as well as in

various other contexts, because it

will bring that more

personalized service that will meet the

characteristics of that consumer.

So, this data collection... It's very

important and allied with data collection

to understand and

create a profile of people. Now

we have artificial intelligence,

which allows machines to learn and

make decisions similar to humans.

So I have examples

of Artificial Intelligence that,

in certain situations, even

seem like the person is having a

conversation through a chat, it even

seems like the person is talking to

another person.

This process of

Artificial Intelligence is already very advanced, or perhaps over the

next few years it will advance much further,

we can't even measure how far it

will go, but at this moment

we see that in recent years there has been

significant progress.

We've had the introduction of these

technologies. So that's more or less the

panorama we have here in

the digital age, and making a contrast,

let's talk about how

the banking context worked more or less before the digital age.

So before this

technological revolution, we had the following:

communication between banks and their

clients was generally done through

correspondence, phone calls, or it had to

be a face-to-face meeting, the person had to

go to the branch to be served; there was a

lack of availability. With

banking services outside of business hours,

people couldn't see

their account balances

outside of those hours. If it was

Saturday or Sunday,

they could only see information if

they printed a statement and kept

it, but that statement would

refer to a previous date, not to that

exact moment. Making

payments like we do now,

through PICS or cell phones, did

n't exist. The most advanced technology

we had was

debit and credit card payments.

Branches had restricted

operating hours within those

business hours; outside of those periods,

customer options were limited.

Then the concept

of remote banking began to emerge, where people

started

to receive services

outside the physical

branch environment, such as

phone calls and the possibility of

using 24-hour banking services and

ATMs, which were available

even outside of business hours.

Then came the concept of internet

banking, office banking, and home banking, and that's how

we got to where

we are now. But before, we didn't

have all of this that we have now. So, what

we saw in practice was that the

branches were super crowded because

everyone who needed to resolve a

situation had to go there in person. During

payday, when

people received their paychecks and had to go to the

teller to withdraw money, it was this

chaotic situation we have now, having to

spend hours waiting at the bank. Today,

if a person doesn't want to, they don't even

need to go to the branch; they can

resolve everything from home. There are even

digital banks that don't have

physical branches and have a huge customer base.

So, the

digital age—this technology that has become

more present in people's daily lives,

devices that have been introduced

to us and that have enabled greater

communication and connectivity—is what

we currently have as the most

modern technology at this moment—is the

use of artificial intelligence

to optimize

processes in relation to the

banking context. Before the introduction

of the digital age, it was more or less like this:

we saw

restricted services in physical branches

and reduced

product availability. Now we're going to talk

about how this digital transformation

is affecting... The financial market, and

as I said, this has been going on for some

years now, but in the last decade,

maybe even the last 5 years, we've had

a very big change in

this digital context of the

financial system. Although we've had the internet for about

25 or 30 years now, and we've

also had computers more or less since then, and

smartphones, maybe starting around

2010, I think, a little

before, maybe, but it became more

popular after that. So even though

we already had these devices, the

revolution that happened in the

banking sector started more or less in the

last decade, we had a

very big change because we

started to have this offer of services

outside the branch environment,

especially when

smartphone apps came along. And maybe it was around

2000, 2013, no, I think a

little later, around 2015, that it

started to come. I still remember

when my bank started

using the app, it must have been around

2015, I think. So that's when it started.

The start was that people realized

they could solve

almost everything through their smartphones. And

then the branches started having

fewer people circulating. Okay,

so let's talk about the main points: the

transformation and technological evolution of

banking has been constant and

progressive over the years,

shaped by the emergence of new

technologies, innovation, and the

objective of placing the customer at the

center. So there's this vision of

using these technologies and

thinking about the customer at the center of

attention, understanding their needs and

desires to offer a

more personalized service. Among the horizons

of differentiation,

customer experience, technological innovations, and the

customization of solutions emerge as the

main initiatives adopted by

banks. So, what I'm telling

you—this needs to be

clear—is that much of what we're going to talk about

in this lesson comes from FEB

Gaban, in a survey they conducted with

various banks. They pointed out

the trends, the new

practices they are adopting in the

financial market, and the

innovations they are bringing. And

what I'm telling you here is that you should

realize there's a very

big concern here. With the customer experience,

Renan, what is this

customer experience? It's basically all the stages

a customer has in their contact with

the financial institution—now,

financial institution, because we're

talking about banks—so from

being served in person,

or also being served through the

institution's app, having the

possibility of using internet banking,

having the possibility of calling later,

having a

more individual conversation with their

account manager. All these points are

part of what's called the customer experience.

Differentiation is what

that financial institution is

bringing that's different from its

competitors, and this will

also enrich the customer experience, making them

feel valued. So these are

the main points, the initiatives

adopted by banks, the horizons of

differentiation, the customer experience,

technological innovations, and the customization

of solutions, bringing that

personalization. How do we bring

personalization to customer service?

We need to understand the

needs and desires of our

consumers, understand what they want,

and try to provide a service that can

meet and exceed those expectations that

customers have, that sees their

needs and desires. So that's why

this Big Data tool is so important.

Data collection is important, and not just collecting data, but also

analyzing it and understanding what that

data is saying about

customers.

Artificial intelligence has proven to be quite

present in this regard. So, in the research that

FEBRABAN (Brazilian Federation of Banks) conducted with the main banks in

our country – they didn't interview

all financial institutions, but the

main banks did – we

'll see that 83% of the banks that

responded highlighted the following as

priority differentiation strategies for the coming years:

what they are seeking, what are

the trends in the financial market?

83% responded that they are focusing

on customer experience, so

this word is very important.

71% on technological innovation, 63% on

product and service personalization, and

58% on cutting-edge security and privacy.

This is extremely important because in this

context where everything is digital,

security deserves emphasis, because

otherwise, cyberattacks can

occur in financial institutions, and

this can

harm many people. So,

investing in security is very important.

54% on social responsibility and

sustainability – very much related to

the idea of ​​bringing in

environmental, social,

governance, or even climate aspects. Within

financial institutions,

54% of integrated EC systems offer a complete experience, meaning that

we'll have

several connected devices providing

a comprehensive

customer experience. I also included the

definition of customer experience: it's

the set of interactions, or rather, the

points of contact the customer has with

the institution and their perceptions. Beyond

these contacts,

the perceptions the customer has

when using banking services are one

of the priority

differentiation strategies for banks in the

coming years. So, how are they

doing this? These differentiation actions...

Regarding customer experience, they

are exploring the

instant messaging channel.

For example, WhatsApp is a form of

instant messaging. And if we

go back some time, it wasn't possible to

manage a product account or

renegotiate debt via WhatsApp; at

most, a person could

contact the bank, perhaps to

clarify a

specific question, but they couldn't actually

perform operations. This has been changing for

some years now, and several

institutions are exploring this to... We

can also bring

product offerings through

instant messaging, expanding transactions

via chatbots, which will be used

here to facilitate communication. I don't

even mean facilitating, but automating

communication with customers. So these

are the main actions within the

customer experience:

technological innovation, the migration

to the cloud for agility and

scalability. That is, instead of having a

physical server that holds the

institutions' information,

institutions are now migrating to the

cloud, using

cloud storage services. There's even a

resolution from the National Monetary Council

that addresses this issue, regarding

rules that institutions must

adopt when

contracting third parties to

store their data in the cloud. So

this is a reality that's happening,

this migration is taking place,

removing physical servers and storing

data in the cloud, exploring

quantum

computing, which are

computers that have

a greater capacity to process data.

Why is this important? Because,

as I said, it's a characteristic of the

digital age, this data collection. So you need

computers with

sufficient processing power to

analyze this data, and that's why,

within technological innovation,

institutions are already exploring these

computers. Quantum use of blockchain

and digital tokenization. Yes, what

is tokenization of a

digital asset? For example, I have a

house that is represented by a

digital asset. It's like, if I wanted to

sell this house, it's just a

transfer of the

token to another person, and I don't need a

deed. I don't need it, like in a

traditional sale,

all those processes. It's not necessary

because I already have this

digitized asset. We can associate this

with Pix itself, we do

everything digitally. But it's in

relation to money, and now there's also

investment in the tokenization of

various digital assets, although this

is still

advancing slowly, we don't

have this as a reality yet,

but this is a trend

for the coming years. So much so that the

Central Bank will establish the

Drex platform, the Digital Real

platform, and there it will allow the

trading of digital assets in a

way that is structured, a

platform that is regulated

in our country. So it's advancing, these

are trends for the future, and the use of

blockchain is to have these

decentralized records. Precisely allowing the

tokenization and trading of these assets,

product and service personalization,

so data analysis with

artificial intelligence for product customization,

is a real trend, right?

Institutions are using this to

bring a more personalized service, and as

I said, through

data collection, taking the person's name,

which is perhaps the most

basic information, but taking the name, taking the information,

taking the consumption history, the

payment history, the products that

this person has, now with Open Finance,

the banking data that this person has

in other institutions, the institution, by

collecting this data, can

build a profile of that client and

understand what product best

suits them, what insurance they

need at this moment, is it

car insurance, is it home insurance, what is the

coverage value, what is the

premium they can pay? So,

using data capture, doing

data analysis, using

artificial intelligence to do this

data analysis and bring a

more personalized product that

better suits this client,

data exploration, that's what I just said, via

Open Finance. So Open Finance is

there and it allows... People

share the data they have in

financial institutions with other

financial institutions. And then, thinking

about that financial institution that is

receiving the data, it's another source

it can work with to try to achieve greater

personalization, greater consent

for data sharing, which also

goes in the direction of security and

privacy, data security and protection,

and risk management to understand

what could affect the

institution's security, social responsibility and

sustainability, a

cultural transformation of the bank, right? From there, of all the

people involved, from the

intern who is assisting, to the

outsourced employees, the

suppliers, all the people, all the

stakeholders who are there in the

financial institution, but

especially the employees, right? Having

this cultural transformation so that

they put this idea of

social responsibility into practice.

Integrated ecosystem offerings, right?

Superstores and digital financial super apps.

So sometimes, right?

Institutions now work with an

environment where it's possible to exchange

credit card points, for example, for

various other types of products and

services, and as if it were a marketplace,

these superstores, right? Where it's possible to

buy various products in

various places, and this has to do

with these ecosystems. So these

are the main actions, with the

priority action for differentiation of...

Banks' exploration of new

communication and service formats highlights the

importance attributed to customer satisfaction and

loyalty, right?

This means how customers will be served through this,

through that, right?

Innovation actions, in turn, reflect the

institutions' commitment to seeking

operational efficiency and extracting

value through key

emerging technologies. So, these are the

main points: seeking

customer loyalty with

personalized experiences. But also keeping an eye on

innovation in these emerging technologies,

because some are just

starting now. For example, the

tokenization of these digital assets,

blockchain, has been around for a few years, but

it's becoming more present in people's lives

now. And in recent

years, talking about

artificial intelligence, which is extremely important,

it has this leading role.

Because in addition to traditional applications

like facial biometrics, chatbots, RPA,

generative intelligence, or

GNI, I think, which has the

capacity to become one of the

most transformative technologies for the

banking industry, has been used

by several banks. And so I come

here and I bring... These definitions

are related to

artificial intelligence. So, for example, this D here

is an advanced type of

artificial intelligence that can generate new

content such as text, images, or music

based on patterns and examples

provided during training.

So, it provides examples,

thinking, right? In the GPT chat itself, what

it does is have a database of

information, and through this database,

where it can perform

queries, it generates text.

The person asks something, and it brings up

a text. But this text isn't created out of

thin air; it accesses its

database, and it was trained with this database

to be able to answer. It has been

learning and improving, and then it

can provide an answer, not always

accurate, but it's advancing. So,

this Di is this type here, not only for

generating text, but we also have

Artificial Intelligence that generates images, music, and voice. It

's possible, maybe

you saw, but it's possible to use

artificial intelligence to

generate the voices of actors, of people,

even musicians. It's possible to change a

musician singing one musical style

to another style. It's possible to

generate this voice here, the person speaking

as if it were them, but in reality, it's just the

artificial intelligence that...

So, this is a more advanced form, but

notice that in addition to these

traditional applications with

facial biometrics and chatbots, we

also have this

more advanced artificial intelligence. And now we're going

to the research that

happened with banks: 96% of the

institutions—not all, but those that

responded—already have

Artificial Intelligence technology. And 54% (half

of those who responded) possess

advanced Artificial Intelligence technologies.

And how do they use this? This is very

important. How do they

use artificial intelligence

within banks? 75% use it for

facial biometrics, which is when a person's

face is recognized.

The first time they access their application, a

request will appear asking if they

want to use facial biometrics so

they can log in again.

If the phone has this

technology, it

will capture the

person's face with the phone's camera and

use artificial intelligence to

create a profile of the person's

face. Then, the next times they

log in, they will be able to log in.

So, the chatbot is the way

to respond, right? Sometimes a person is

on the financial institution's website and

a chat window automatically opens,

asking how

that application can help them. Then

the person goes there and writes, and the

chatbot responds in some way.

And so I highlighted here the main

concepts, they have a description here, right?

So, facial recognition technology

identifies or validates

identity. A chatbot is a program that

uses artificial intelligence to

simulate human conversations. RPA, which is

robotic process automation,

uses

artificial intelligence to automate

repetitive tasks where before we had

humans doing them, but now it's possible to

use technology to

automate them. So, for

example, sending emails to

clients.

Before, there weren't

many ways to manage sending

these emails automatically, but

now it's more common. So, it's

possible to use, for example, a CRM, which

is a customer relationship management system,

to automate sending emails

or even

contacting the client. There are some...

Here are ways to automate these

repetitive tasks, and here 67% use

artificial intelligence for this type

of procedure, 54% use

cognitive intelligence, 25% use robo-

advisors, 21% use voice biometrics, which is

very related to what I told

you, and 17% use artificial intelligence

as a user interface. So,

cognitive intelligence simulates

human cognitive functions such as

learning, reasoning, and

problem-solving to improve

decision-making. It can also be used to

understand consumer profiles.

A robo-advisor is a digital platform

that provides financial consulting services

based on algorithms, without

human or direct intervention. So,

in my bank app, I open it,

and the bank acts as if it

were my account manager.

It identifies my profile and

outlines which investments would be

interesting for me based on the

data it has. But it's not a person

doing this analysis and

recommending investments; it's a

robo-advisor, a technology that

uses artificial intelligence to

profile me and recommend

the best

investment. Obviously, it's not always the case. That's

right, isn't it? But it's already there to

automate processes as well.

Voice biometrics and

artificial intelligence with a user interface that will

interact intuitively with

users, facilitating navigation and the use

of applications and systems. So, these

are the main uses of

Artificial Intelligence in banks.

Now, thinking about

the front end, which refers to the

part of a system, software, or

application that interacts directly with

end users, right? So, in the front end,

I'll have software that

speaks directly to the end user,

while in the back end, it will handle

data processing and the

business logic behind the operations. In

other words, it will be more of an intermediary service,

while here it would be a more

final service. Here I have a service that

is more of an intermediary service. And how is

artificial intelligence used

for the front end and for the back end?

Personalization of offers, i.e.,

end consumer;

customer segmentation; onboarding marketing;

KYC acceleration; simulation and optimization of

investments and portfolios;

recommendation systems; analysis of

complaint results; sentiment analysis and

Omniverse; interactive sessions based

on avatars. So, that's how it is. The fact that

banks are using

artificial intelligence in their backend operations

is mainly for

personalizing offers, which aligns with

what we've been saying:

banks are working

extensively with this idea of

personalization and customer experience.

And then, for the backend, it's for

fraud detection, money laundering again,

profiling customers, knowing what

operations they are performing and whether these

operations may pose

risks, suspicions of money laundering crimes,

document recognition,

credit risk analysis,

machine learning assistants, detection of

cyber anomalies,

software code development, AI-driven monitoring and

surveillance, cyber

risk assessment,

and optimization of controls.

Where is the highlight? Certainly here,

in fraud detection and

money laundering. 73% of banks

respond that they are using

artificial intelligence in their

backend operations for this type of thing.

Well, 11% is the average rate of increase. Look,

this data is important: 11% is the

average rate of increase in efficiency in

banking processes after the implementation

of Artificial Intelligence. And I'm

not saying that 11% comes from the

digitization happening in the market.

Financially, no, I'm only talking about

Artificial Intelligence technology

within the context of

digitalization, and it alone

increases the efficiency of banks by 11%. There

was a 12% average improvement rate in

customer service reported by the

responding banks, perhaps because it's

providing more personalized service,

perhaps because it's better able to respond

to demands. So there was a 12%

improvement. A 12% improvement rate was also

reported by the responding banks in application development,

and a

17% average improvement rate for

back-office operations, mainly regarding

fraud detection. So, look,

artificial intelligence, besides

providing a better

customer experience—because it improved by

12% compared to what it was before—

and this is still at the

beginning, we have no idea

where artificial intelligence will go

in the coming years. It's just the

beginning, and so far there's already this

12% increase. But regarding

backend operations for

fraud and money laundering detection, we

already have a 17% improvement. So

artificial intelligence is also

proving useful not only... To bring this

more personalized experience, but

also to identify fraud and crime.

Okay, and now talking about open finance,

which I already told you is about the

sharing of data between

financial institutions about their

clients. Look how the adoption

is also growing. So in 2023

we had the following: between 0 and 5% of

clients who had adopted open

finance shared data.

Only

73% of banks responded that

0 to 5% of their clients had

adopted it. From 6 to 20%, only

18%, and above 20% of clients—so if

the institution has 1 million

clients, above 200,000,

only 99% of banks had

reported this percentage. In 2024, the expectation here is that

this number will fall from 0 to 5%. But

that's not worse, right? Because if it

fell in the 0 to 5% range, it means it will

grow in the other ranges, from 6 to 20%, there is

an increase. The expectation is 18%.

For 32%, it's above 20%

because it's a very large base,

99% of banks expect that their

clients, above 20%, have joined

Open Finance. But it's interesting

because it's better for the consumer, right?

Because, of

course, if it's useful for them, right? But if they

're looking for

some kind of credit, like

mortgage financing, it might be

interesting for them to share this data

with other institutions so they

can see where they'll get the

best rate. So it's good for the user to

share this data

when they need some kind of

banking service because it will increase

competition, and they'll be able to make a

better-

informed decision. Here we're talking about the

growth of

banks' investment in technology budgets. We

can see here that this has been

increasing in recent years.

So the growth in the total

technology budget shows the

banks' focus on providing

more fluid and customized experiences

for customers and promoting greater integration

between technology and business. In 2024,

these investments could reach 47

billion, exceeding the volume of the

previous year. So, if... Okay, so if you

add it all up here, it's roughly

30, right? 39 here, and now 47,

right? And with banks geared towards

Artificial Intelligence,

Quantum Computing, data exploration,

cybersecurity, Cloud (which is

cloud storage), Agile processes, ESG (Environmental,

Social Responsibility and Sustainability practices), and people—so,

for those

differentiation actions, right? They're

investing, they're directing this

budget towards technology. And again,

we see how this has been growing,

an increase in the expectation for

2024 of a 21% increase compared

to the previous year, 2023, because 2022 had

an increase of 11%, from 2022 to 2021, 19%, 11%,

12%. So I realize how it was much more

modest here in 2019, only 23%, and now it's

already double. That's what I'm telling

you, this more

radical change that we've had started in 2018,

2017. Since 2018, and it's been growing and

increasing every year, right? The technologies

we have, the budgets here are

also increasing, because we're

seeing an optimization in the

processes. Let's talk a little about

the ESG theme, which is these

environmental, social, and governance aspects, and how

they are being introduced in

financial institutions. It was pointed out

as an emerging movement in the

previous edition of the FEBRABAN survey.

Remember that we're looking at

FEBRABAN data; it's a priority

on the strategic agenda of the

financial industry, where new technologies

expand opportunities to implement

actions focused on these issues. So,

86%, or rather 82%, of banks offer

sustainable finance solutions to

their clients, of which 94% offer ESG

products, which have this

characteristic of concern for

environmental, social, and governance aspects, for the

people involved.

And what types of ESG

services are offered here?

Sustainable financing,

also considering, right, not the client's over-indebtedness,

having

this care in offering credit,

thinking about financing

photovoltaic panels for... It's about reducing

consumption and taking advantage of

solar energy, financial education to achieve

greater knowledge, and

also to avoid

over-indebtedness of clients, issuing

social and sustainable green bonds,

responsible investment, loans with

performance-based interest rates, ESG

and supply chain traceability.

But mainly, especially here in

sustainable financing in relation to

financial education, 72% of banks

offer financial education solutions

to their clients through these

channels: 92% on the website,

77% in lectures and courses, 62% in the

app, 54% on social media, 38% in

podcasts, 31.5% in cash withdrawals (which is

more difficult to access), and 15% via SMS. So,

through these channels,

banks offer

financial education solutions to their clients.

And what can we take away

from

what we've seen so far?

Solid and continuous investments. The

banking industry continues to expand

robustly in technology, with a

104% increase in budget in 8 years, which has doubled.

We saw that investments went from 23 to

47, focusing on data exploration,

cybersecurity, and

customer experience. These investments could reach

47.4% by 2024.

Adaptable and customizable Artificial Intelligence,

especially generative AI, is being

used by 54% of banks and is

highly adaptable to the

specific needs of business areas,

driving innovation and

productivity. Sustainability and

governance are in focus. We saw the presence of financial education in

relation to sustainable finance solutions.

This point...

Customer-oriented transformation, as

I mentioned at the beginning of the class, putting the customer at the

center: 83% of banks prioritize

customer experience as a way to

differentiate themselves from their

competitors, seeking greater integration

between technology and business to exceed

customer expectations. And what do

we have when we exceed expectations? We

have a

satisfied and loyal customer who will become a

brand advocate. That's why it's a

differentiation. Platformization for

innovation... So, platformization is

consolidated as a key strategy,

allowing the expansion of products and

services beyond the traditional ones,

representing a

significant opportunity for innovation and

satisfaction. From the perspective of clients, efficiency and

agility with the use of the Cloud.

Cloud migration is promoting efficiency,

process automation, and a culture of

collaboration, with 79 banks planning to

increase investments in

Cloud technology. There's also a small part here

that FEBAB (Brazilian Federation of Banks) highlights, which is related to

IT professionals. So we see,

right? Competitions like Banco do Brasil,

Caixa Econômica, and other banks

are also offering many vacancies

for people who work in IT.

This is because there has been a

growing demand from financial institutions, with a

22% increase in the total number of

IT employees, totaling

45,300 professionals, and investments of

almost 3 billion in infrastructure and

technological solutions to improve the

work experience of

professionals. Continuing here, in

this context of the

digitalization of the financial system,

we can see through this

graph how the volume of transactions

is divided into different channels.

We will see here that today

most transactions are

happening through mobile banking, which

went from

37.2 billion in 2019. This is in millions. The volume

of transactions in millions went from 37.2

billion to... From 2019 to 2023, the volume was projected at 130

billion, so there's been a

very large increase in mobile banking, which is when

people use their phones or

tablets to conduct their

financial transactions. As I've been telling

you, 2015-16 was the start,

where we began to see these

applications. Most

people—well,

most people, because we're seeing that it's

more now, but yes—and people with

more technological experience started

using them back then, and since then

the representation has only increased.

And it's worth mentioning the big jump

from 69 to 107 billion was

mainly due to the introduction of Pix,

because those people who didn't

have Pix before started to...

they had to download their

bank's app, install it, and thus begin to

conduct their transactions. So Pix was

a

radical change that allowed

this increase in the volume of

transactions. I know this because I

experienced it firsthand. I saw

people going to banks... My bank,

by the way, to request

Pixel registration, you have to download the

app and everything else, so I

experienced this happening in practice, and that's

why we have this

significant increase. But here in the graph, we

also have

other channels, for example,

internet banking, which uses the

computer to perform operations.

We see that it remained somewhat

stable, from 16 in 2019 to 16.4

in 2023. It even had a slight drop in

2022, but it remained relatively

stable. So there's a segment of the population that

prefers to use internet banking more, and that's what's

also noteworthy is

instant messaging applications, which

I also mentioned throughout this lesson. If we

look at 2019 and 2020,

these operations

through instant messaging didn't exist. It

started in 2021, representing only

0.01 billion of the operations, not

reaching 1 billion. It increased from 0.01 to

0.07 and then... So, at

0.13, there was a 76% increase

compared to 2022, so it's a trend

for the coming years. These

transactions are happening through

instant messaging, and we also have transactions

with bank branches with self-

service points of sale in

commerce. There's a

commercial establishment where the

financial transaction takes place, so

we see that overall, they've

remained relatively stable. There was a

drop in self-service at

ATMs, but the others have

remained relatively

stable.

And here we show the difference between

digital channels and physical channels, and

also points of sale. So

we see the large volume here. So,

regarding

digital channels, they went from

52% to

79% in 2023. Seven out of ten

banking transactions are now done on

mobile devices. And of those,

79%

are digital channels, which is a more comprehensive total,

including internet banking.

We're seeing a drop in physical channels here,

from 30% compared to

2016. When

this trend started,

physical channels represented 33% of

all

operations, and from 33% to 7%

in 2023. So, that

's a significant drop. Imagine

saying that only 7% of all

operations happen

through physical channels. If

we go back to

2010, 2000, as I was saying,

we already had technologies like the

internet,

cell phones, and computers, but the

number of transactions was still very high in

physical channels. In 2016 it was still 33%, but

since then... There's been a

huge revolution in the financial system, the

evolution of banking transactions in the

last 5 years. 43% of transactions

were carried out via mobile banking. That's in

2019, so it represented 83 billion to 86.3

billion in 2019. And we'll see here that in

the year—this is all 2019—from

86 billion to 186 billion. From

43% carried out on mobile in 2019, this

number rose to 70%, which is what

we're seeing here. 7 out of

10 here, from

37.2 billion to

86.3 billion just in mobile banking. That's what

represented 70% here. Considering

all channels and financial transactions

in mobile banking, from 4.7 billion to

25.8 billion, an increase of 449 billion. The

increase was very large. Of the

transactions carried out via mobile banking,

100% of banks

currently offer instant messaging channels. In the

last year, this percentage was 67%. 100%

of the banks that responded to the survey... Okay, so

we see that banks

are already using this technology. If

we look at 2020,

we didn't have operations

happening through instant messaging;

we didn't effectively have

the communication channel to

contact the bank, but the operations weren't

happening there. And now we

see that banks have already adopted

this, and the volume has increased from 70.9

million to 125 million, a

76% increase in transactions that take place

through instant messaging channels.

And what are these operations?

31% are non-financial

credit card transactions, 26% are other transactions (that's

a large group), 24% are

balance inquiries and statements, and 18% are

debt renegotiations.

So these are the main

transactions that happen within

instant messaging applications. The number of users

registered in PX is showing

how PIX

represents a large portion of our

population in

2022: 98 million. In 2023, 114 million users

increased by 16% in one year. But the increase

itself isn't that large,

because in 2022 there was already a

very large percentage, but here we're talking

about 114 million, which is more than half of

our country's population

using Pix. Of course, there are

legal entities that also have Pix, and that's

fine, but still a significant number. I do

n't know if they

only considered individuals here, and if the

registered users are individuals

or legal entities, but in

any case, we see that it's a

representative portion of the population.

The number of transactions via Pix

was 24 billion in 2022 and 41 billion in 2023. Here, the

increase was significant, 74% in volume, in

the number of transactions. So,

despite the increase not being so

large in relation to the number of

users, in the number of transactions,

we had a much larger increase

proportionally. This is because people

started to make more transactions through

Pix instead of using

credit cards, instead of using

transfers, or any other type of

payment. Okay, so what are the main

insights we can draw from

these last slides

we saw? 186 billion

banking transactions, a 19% jump. So,

banking transactions increased

significantly in the last year,

reaching 186 billion. Mobile banking stands out,

growing 22%, reflecting

consumer preference for this

channel. The dominance of mobile banking, which is what

we saw: seven out of every five of

these transactions happen via mobile

banking, and in the last 5 years this number has

quintupled, reaching 25.8 billion. Customer

service via instant messaging:

all banks offer customer service via

instant messaging applications,

with a 76% increase in transactions. The

popularity of Pix: Pix promoted

financial inclusion and revolutionized

banking transactions in

Brazil, with 45% of users being heavy

users. This concept is important

because FEBRABAN uses it several times

in its research, although I

only brought it up now in this slide. I'm going to give

you the definition of a heavy

user: that person who, in addition to having a

registration, uses Pix or

any other type of service frequently. It's

not about having a user. It's because she's using it a

lot, and here we're talking

about 45% of users who use Pixel

being heavy users who are using

Pix a lot month after month, right? In their

operations, the digitalization of the

insurance sector is also an important part

that FEB Gaban talked about.

Digital insurance simulations

increased with 18 million quotes in the

last year, indicating a greater demand

for online services and opportunities for

improvement in the digital journey. In other words,

people are getting quotes

for their insurance in digital environments.

So they can access the app where

they have an account and get a quote for

their car insurance, for example. So there's

also a digitalization happening

in the insurance sector. And before we

finish here, it's also

important to differentiate, in the

context of banks in the digital area,

between a digital bank and a

digitized bank. A

digital bank, also called a

virtual bank, is a financial institution that

operates exclusively online without a

physical presence like traditional bank branches.

It offers

financial services and transactions through

digital platforms such as

mobile apps and internet banking. So the

digital bank doesn't have physical branches; it's

born from the digital world, it's created from... The

beginning, with a

technological infrastructure geared towards meeting

customer needs in the

digital environment, these banks will be

known for their fragility, convenience,

and low operating costs because they don't

need to maintain a

branch structure, right? Having employees there,

paying rent

to maintain the branch, having all the

associated costs—they don't have that

because they operate in the digital world,

allowing customers to perform

banking transactions quickly and

easily anytime, anywhere.

A digital bank, what's

the difference? It refers to a

traditional financial institution

that adopts digital technologies to

improve its processes and services.

So, we take Banco do Brasil,

Itaú, Caixa Econômica—these are

traditional banks that were born

physically, with branches and everything,

but in recent years they

have embraced this digital context. They

have their apps, they use

Artificial Intelligence.

Digital banks have a

physical presence with branches and subsidiaries, but they also

incorporate digital channels into their

operation. A digital bank is born digital; a

digitized bank transforms itself

digitally. It's not that it

transforms itself, but rather that it ends up

incorporating digital technologies

into its environment. Okay, so to wrap things up,

the main challenges we might

face regarding this digitalization

happening in the financial market are

the following:

cybersecurity is a

constant concern because technological advancements

also bring risks of

data breaches and cyberattacks, which is what

I mentioned at the beginning of the lesson.

That's why banks are

adopting this—around 50%—as

a trend for the coming years.

This concern with security means

banks need to invest in

security measures to protect

confidential information from their

clients. Furthermore, another point

that deserves highlighting is

regulation and compliance.

Regulating financial institutions

with this digitalization will become a challenge because new

services and new products emerge, making it

difficult for regulators to

keep up with what's

happening in the financial institutions environment

within this digital context.

As new technologies and

business models emerge,

regulatory authorities are seeking to find a

balance between innovation and

consumer protection. The Central Bank, CVM (Securities and Exchange Commission of Brazil),

SUSEP (Superintendence of Private Insurance), and Previc (National Superintendence of Complementary Pension Funds)

are there to regulate the

market and provide greater protection to

consumers. There needs to be this

balance here; it needs to allow for this

innovative environment that will bring

personalization to the customer, that will bring

these innovations, but it also needs to balance that to

protect the

consumer so that they are often

accessing a

financial institution that is solid

and able to honor its

payments.