A new study by fintech Mambu has found that young Brazilians are the most active users of financial products in Latin America. The study found that on average, Brazilians aged between 18 and 35 use 3.09 financial products, more than any other country in the region. This is surprising given that Brazil already has a high level of banked population, with 70% of adults having access to banks.
The study suggests that the high number of financial products used per person in Brazil is a result of the technological maturity of the market. Brazil is the only country in Latin America where more than half of young people use neobanks or digital banks as their main financial institution, instead of traditional banks. This is a much higher rate than other countries, with Argentina coming in second place with only 21% of young people using neobanks.
The growth of digital banks and neobanks in Brazil has led to the creation of complex financial mechanisms, with players seeking to innovate in their products and services to meet the diverse needs of consumers. According to the study, this has also led to an increase in demand for financial products. On average, people who use neobanks as their main financial institution use 3.1 products and 8.6 services, compared to traditional bank users who use 2.6 products and 7.6 services per person.
In Chile and Argentina, the study also identified a correlation between the use of neobanks and an increase in demand for financial products. In Chile, 97% use traditional banks as their main financial institution, but the demand for products is relatively low compared to other countries in the region, at just 2.4 per individual. In contrast, in Argentina, where only 49% of the population is banked, but 21% of the population use neobanks as their main institution, the average number of products per individual is high at 3.06, second only to Brazil.
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