Brazil faces rising consumer debt amid fintech and AI evolution

Brazil is experiencing a complex financial landscape characterized by rising consumer debt and a simultaneous technological shift in the banking sector. Data from Serasa indicates a nationwide decline in average credit scores between 2025 and 2026, driven by high interest rates and increased delinquency. As of May 2026, approximately 83.5 million consumers in Brazil were in default, with household income commitment to debt reaching 28.5%.

Despite these challenges, the financial sector is evolving through digitalization. Fintechs are leveraging artificial intelligence and Open Finance to provide faster credit assessments, challenging traditional banking models that often suffer from slow processing times. The widespread use of Pix, with over 170 million users, provides a robust infrastructure for AI-driven financial services. Additionally, retailers are increasingly adopting proprietary credit models to drive sales amidst high delinquency rates.

In a move to expand financial inclusion, Caixa Econômica Federal has begun recognizing the income of app-based delivery and mobility workers as formal, potentially easing access to credit and housing programs like Minha Casa, Minha Vida.