Finances cause stress in the family lives of 58,4% Brazilians, according to the Brazilian Financial Health Indicator. This research indicator was part of an initiative to provide financial education tools for the population, and it was conducted with more than five thousand people. Reaching Brazilians from all regions, economic backgrounds and ages, it was built to evaluate certain financial aspects. This has sparked conversations and brought attention to why Brazilians are so financially stressed, and how financial tech solutions are helping.
Finances during the pandemic
Another research from Axxus revealed how Brazilians are managing their finances during the pandemic. As for financial management in the home, 76% of interviewees said they are not handling their finances very well during this pandemic. Also, 86% of Brazilians affirmed that they had their finances compromised during isolation.
All of this can be explained by the fact that unemployment rates increased, especially when restrictions were stronger and non-essential outdoor activities were prohibited. Some companies managed to put employees in the home office mode but businesses from other areas suffered a brutal impact, and that increased the unemployment rates. In addition to that, essential products, like food, got pricier and forced consumers to adjust their buying habits to the new budget.
Handling the household budget is a big challenge, especially in times of crisis, so every solution to help with it is definitely welcome. One of the main and most popular financial tech solutions right now, created and popularized by fintechs, are digital bank accounts and credit or debit cards. Because most of these bank accounts and credit/debit cards are free, a bigger number of people were able to access these financial services. Also, others who relied only on traditional banks have migrated for digital accounts.
As a way of keeping up with the market and avoiding staying behind, traditional banks and big financial companies have also implemented these new practices. Because of that, consumers have even more options to choose from, whether it be a digital bank account from a fintech or a free debit/credit card from a conventional bank.
As mentioned before here on the blog, the fintech market is thriving not only here in Brazil but all over the world. And with more people turning for the type of solution these companies offer, it is set to increase even more. With experience managing financial projects and dealing with companies and consumers, our team is prepared to collect all the data needed for your company to safely navigate and adjust to this new era of finance.