The provision of consumer credit can help the economy spin faster; read the article

Technological innovation has been a strong ally in times of crisis and this will keep the economy growing in 2023

At dinner with businessmen before the first round of elections, then-presidential candidate Luiz Inácio Lula da Silva talked about economic growth, fighting inflation, job creation and increasing the purchasing power of workers.

Directly related, inflation and the low purchasing power of Brazilians are attributed to the domestic scenario and the world economy, strongly influenced by the high dollar and the war between Russia and Ukraine.

One alternative that can help the Brazilian economy spin faster and expand business is the offer of consumer credit. This democratization is one of the initiatives already reported by the new government as one of the measures to promote social ascension and create opportunities, contributing to the reduction of inequalities.

The same financial institutions have shown optimism in their forecasts relating to the increase and access to credit, also foreseeing possible reductions in default rates.

Still largely concentrated in traditional banks, the supply of credit has been expanded by fintechs, transforming the way of doing business through the digital revolution.

In this hyperconnected universe today, these startups, regulated by the National Monetary Council (CMN), are moving the financial sector a lot, increasingly expanding the offer of services and products to consumers, with more accessible costs, through technological advances.

Some services and business models still lack regulation and rules that ensure governance and sustainability. The Central Bank of Brazil (BCB) has worked to modernize this segment, following the digital evolution.

It is always good to remember that it is up to the consumer to choose. With a credit card culture still very much present in Brazilian households, the “buy now, pay later” model – Buy Now Pay Later (BNPL) – remains current as an attraction for consumer goods.

Optimistic that I am and having followed economic and political crises of small and large proportions in the country in recent decades, I believe in the enormous learning that these situations bring us. We managed to come out stronger and better prepared for the challenges. Technological innovation has been a strong ally in this sense. With this new arsenal of consumer tools and facilities, the economy is expected to return to a level of growth in 2023. /Business man. Founder and CEO of Grupo CB

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Source: Terra

Camila

Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.