Financial Inclusion in Brazil: Building on Success

This paper studies the status of financial inclusion in Brazil and identifies the key factors responsible for Brazil’s success story in financial inclusion. The research further identifies issues as to why the financial inclusion agenda in Brazil is still far from complete. It also presents observations and recommendations to enhance the process of financial inclusion in the form of a technical note. The following sections are discussed in detail:

• Status of financial inclusion in Brazil with regional comparators and also with nations outside Latin America;
• Financial access delivery channels and the users of financial services and products;
• Credit reporting system in the country and the extent of consumer protection;
• Discussion on the providers of financial products with a focus on their strategies and the credit and loan products they offer;
• Role of laws, regulations, and government programs in promoting financial inclusion;
• Payroll-guaranteed loan program: characteristics, impact, and issues;
• Characteristics, participants, and issues in the credit information system of the country;
• Features and shortcomings of mobile payments and credit cards with a focus on the rule of overpricing.