Brazil’s banking sector pivots to digital as branch network drops 36%

According to Febraban research for 2025, 78% of banking transactions in Brazil were made via mobile phones and 83% overall through digital channels, out of 240.8 billion transactions. Pix payments continued to expand, with 80% of person‑to‑person Pix transactions settled instantly and strong use in merchant terminals. Banks plan to invest R$50.4 billion in technology in 2026, prioritising cybersecurity, cloud services and generative AI, although AI adoption is still in early stages.

Separate analysis of Bank Central data shows the number of physical bank branches fell 36% over the past decade to just over 14 thousand. Since 2015, 638 municipalities—affecting about 6.9 million people—have lost all agencies, and 2,649 cities (48% of the total) now have no branch. The decline is linked to cost‑cutting, the rise of fintechs, mobile apps, and Pix, accelerated by the pandemic, and has resulted in the loss of roughly 1,000 banking jobs in Rio de Janeiro.