RIO and SÃO PAULO – Customer benefits, diversification of services and investment in new platforms and strategic partnerships. Pix’s arrival, in just over a month, has already intensified competition between large banks and fintechs, which have been looking for differentials to maintain and expand the portfolio of account holders.
Created by the Central Bank (BC), the most evident effect of the new service – which will allow you to make payments and receive transfers 24 hours a day, instantly and at no cost to the individual carrying out the operation – will be the reduction in the use of the current ones DOCs and TEDs, explain experts.
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As traditional banks now charge for transfers, they already plan to offset the future loss of revenue by reinforcing participation in other areas, such as credit and financing. Digital banks, on the other hand, use proximity to the customer and partnerships to enter this new phase of the financial system.
Claudio Gallina, from the Fitch risk rating agency, says that banks’ revenue loss should be up to 2%, but that the most efficient institutions may even increase profitability with efficiency gains and less spending on physical structures.
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Itaú estimates that the impact on its revenues with the adoption of Pix and the consequent reduction in traditional transfer modalities is about 1%. But Ivo Mosca, the bank’s superintendent for instant payments, sees huge earning potential with Pix, due to the ease of the system and reduced costs:
– With the pandemic, many customers have already left for the digital world, with the opening of virtual accounts. Now, with Pix, the market share (banking) should grow, we are talking about including tens of millions of people in the system.
In his opinion, DOCs and TEDs should decrease by up to 70% in the coming years:
– Large companies can maintain the use (of DOCs and TEDs), because they have an installed infrastructure of automation systems and tariff negotiation given the high values of the transactions.
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For Breno Lobo, head of subunit of the BC’s Competition and Financial Market Structure Department, the estimate is that these traditional forms of transfers disappear within ten years.
Santander has invested in a massive campaign for its customers to pre-register to use Pix, but which also aims to win customers from other institutions. At Pix, the customer can use the CPF, e-mail or cell phone number as a key to receive a transfer, but each key can only be related to a specific account.
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Acquisitions and partnerships
Santander hired actress Ana Paula Arósio to publicize its platform and offered those who registered ten days without interest on the overdraft. According to Marcelo Labuto, executive director of the segment aimed at individuals in the institution, the idea is to convince those who signed up to stay at the bank and win the market:
– There will be a negative impact on revenue when the customer stops using tariffed DOCs and TEDs, but we believe that, with the arrival of new customers, we will gain transnationality in other ways.
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For Cristina Junqueira, co-founder of Nubank, the fintech starts at the front because it already offers free transaction options in the digital environment. Even so, the company has been seeking growth and diversification through acquisitions, such as that of broker Easynvest.
– Big banks make millions on products (like TEDs), which is no longer the case with us. In the case of Pix, our customers will have no cost to make or receive the transfer, as well as legal entities – says Cristina.
Under BC guidelines, individuals will not pay a fee to make transfers or payments with PIX, but may be charged on receipt, depending on the frequency and type of payment. Legal entities may also be charged.
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C6 Bank, anticipating the arrival of Pix, entered into a partnership with operator Tim, since one of the ways to use PIX is by providing the cell phone number.
– We believe that telephony will be the main key in Pix’s transactions. Having a partnership with a large company in the sector is important because it helps us to bring this news to a greater number of consumers – says Maxnaun Gutierrez, partner responsible for products and individuals at C6.
The partnership with Tim has been in effect since July.
– A year ago we operated the C6 Kick, a message transfer service, similar to Pix, using only the cell phone number. This will help us now in implementing Pix – says Gutierrez.
Expansion of services
At Inter bank, they also already work with a platform similar to Pix, allowing customers to make payments and collections among themselves by opening a QRCode, Interpag.
– With the arrival of Pix, we will be able to simplify and reduce costs in day-to-day transactions. And the reduction in fees charged to the bank will generate benefits. Without bearing these costs, we will be able to invest in more usability tools – explains Eduardo Cotta, Inter digital superintendent.
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Banco do Brasil (BB) is also preparing for the arrival of Pix. In order to compensate for any loss of revenue from DOCs and TEDs, the institution intends to strengthen its presence in the various areas of the financial market to attract new customers, especially in the digital:
– Our differential is that we have a variety of products, such as security, card, investment, credit, financing. The work will be focused on expanding this offer – highlights Edson Costa, director of BB’s means of payment.
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Henrique Gallotti, senior manager of financial services at EY, points out that Pix is a feature that competes with five payment methods: debit, credit, prepaid card, transfers and payment slips. He assesses that the big banks can be very affected, in relation to revenue, also in the cards.
– With the advance of Pix among customers, there will be a big impact on revenue due to the drop in the use of cards, especially debit – comments Galloti.
Regarding the credit card, the expert considers that, in Brazil, there is a good experience of customers with payment in installments and in installments, which can insure, for the time being, the reduction in the use of credit.