We often say that Brazil’s financial system is one of the most advanced in the world. This notable evolution can be summed up in three fundamental pillars: instant, connected, and intelligent. These pillars not only reflect the current state of our financial system but also point toward where we are headed.
Nearly 40 years ago, the DOC (Credit Order Document) was considered the most modern and fastest method for financial transfers. At that time, the DOC was revolutionary, offering the most instantaneous option available. Today, looking back, we can see just how far we have come.
Currently, Pix and cash payments are the most instant payment methods available, each suited for specific contexts. Pix, in particular, has revolutionized digital transactions, providing a quick and effective solution that fits the pace of modern life.
On the other hand, Open Finance has acted as a catalyst, enhancing connectivity and security in financial data exchange. It has ushered in a new era of efficiency and security in the sharing of financial information. However, we still rely on file transfers and spreadsheets for many processes—a method that will undoubtedly evolve in the coming years to align with the new industry paradigm.
Looking ahead, Drex (Brazil’s Digital Real) promises to introduce an unprecedented level of intelligence into financial transactions. Imagine pre-scheduled payments or guarantees that today are handled through checks being automated via smart contracts. This innovation will enable solutions such as the use of a credit limit until a specified date, with automatic settlement on the due date.
The evolution of our financial system extends far beyond these examples. We are moving toward a future where investments, insurance, loans, and international transactions will become increasingly instant, connected, and intelligent. What we are witnessing is a true revolution in the financial sector, where speed, connectivity, and intelligence are not just ideals but tangible realities shaping the way we interact with finance daily.
Of course, we face challenges. There is an urgent need for more resources for regulators, ensuring they can effectively oversee and guide this rapidly evolving environment. Additionally, professional training in the financial sector is essential to ensure that institutions not only keep up with innovations but also lead them.
Moreover, ensuring the efficiency and inclusivity of the financial system means preventing digitalization from becoming a barrier for segments of the population who may be less tech-savvy or have limited access to digital infrastructure.
Brazil’s financial system stands on the brink of a new era, driven by innovations that will fundamentally transform the way we handle financial transactions. This journey toward a more instant, connected, and intelligent system reflects the technological advancements across all sectors.
📌 Article originally published in Época Negócios.