Brazilian banks boost profits through digitalization, raising concerns for customers and staff

In 2025 Brazil's banking sector invested R$ 47.8 billion in technology, accelerating a shift toward mobile and internet channels that now handle the majority of transactions. Physical branches have been sharply reduced, with only 7.2 billion in‑branch transactions recorded that year and an estimated 19.7 million people living in municipalities without a traditional bank office. About 5.6 million residents in 926 municipalities lack any point‑of‑service, prompting reliance on smaller service points and credit cooperatives.

The digital transition has increased profitability for banks but also triggered job cuts among operational and administrative staff. Public banks continue to dominate mortgage credit in the North and Northeast regions, highlighting uneven digital inclusion. Meanwhile, onboarding practices that rely solely on facial biometrics are deemed insufficient, as fraudsters exploit legitimate documents and AI‑generated deepfakes. New resolutions from the Central Bank of Brazil and the Monetary Council, effective 2025, require cross‑checking customer data with external databases, promoting an "intelligent registration" model that combines biometrics with broader risk analysis.

Industry leaders, such as Lígia Lopes, CEO of fintech Teros, argue that integrating biometric verification with additional data layers is essential to detect hidden risks and protect both institutions and consumers in the evolving digital landscape.