Country closed 394 units in 2022 and the total dropped to 17,908; large banks hold 85.6% of the total
Brazil closed 394 bank branches in 2022. The country had 17,908 units in December last year, the lowest annual number in the historical series of the BC (Central Bank), started in 2007.
The decrease was driven by the main private banks in the country (Bradesco, Santander Brazille Itau), which closed the activities of 377 branches. THE BB (Banco do Brasil) installed 3 more units last year, while Caixa Econômica Federal made no changes. Smaller banks closed 20 units in 2022.
The cuts in the physical structures of companies are due to the digitization of the financial sector. The modalities of payments and transfers significantly reduced the need for consumers to go to bank branches.
An example of this is Pix, which, since March 2021, has been the most used payment instrument in the country – even though it does not handle amounts greater than boletos and other interbank transfers.
The instant payment tool was launched in November 2020 and was popularized more than expected by the Central Bank.
Pix accelerated the end of part of bank agencies. Five years earlier, in 2017, Brazil had 21,833 bank branches. Down 3,925 by 2022.
After the covid-19 pandemic, large banks closed 2,563 units. There were 17,920 in February 2020. It dropped to 15,357 in December 2022. Bradesco alone eliminated 1,599 units. Itaú, 416.
MARKET DIGITALIZATION
The market also adhered to digital banks that have almost no branches. THE Nubank it has 3 units and has 69.08 million customers, more than Santander Brasil (62.03 million).
If you add Nubank’s clientele, Original Bank (47.99 million), Banco Inter (23.22 million), C6 Bank (22.91 million), there are 163.2 million registered accounts.
In 2022, the financial institution with the most bank branches was Banco do Brasil, with 3,983 units. The state-owned company serves 74.1 million customers.
Caixa has 148 million registered accounts, but had fewer units last year: 3,372.
Find out which banks have the most consumers in proportion to the number of units:
- Bank of Brazil – 18,600 per agency;
- Santander Brazil – 24,100 per agency;
- Bradesco – 35,800 per agency;
- Itau – 38,300 thousand per branch;
- Cashier – 43,900 thousand per branch.
WHAT BANKS SAY
THE February (Brazilian Federation of Banks) said that financial institutions are adapting their structures to the new market reality, with greater use of digital channels, which offer more convenience.
Data from the federation indicate that the number of banking service stations has remained stable over the years. Increased from 37,800 in 2020 to 37,500 in 2021
“The advancement of digital services has led financial institutions to hire a large volume of professionals, especially in areas such as IT and security against digital fraud, for example.”, said Febraban. read the full of the press release (20 KB).
“BB continuously studies the best solutions to balance the operating capacity of its premises, seeking the best customer experience, resulting in greater satisfaction, in addition to playing a fundamental role in the economic growth of the markets where it operates. In this sense, specific adjustments in the topology of the BB network are constantly carried out, aiming at adapting the service force in the bank branches.”
“In addition to the continuous change in consumer profile and behavior observed over time, the pandemic has boosted the use of digital solutions and channels, exponentially accelerating the number of supporters of remote service solutions, especially regarding transactional demands. Banco do Brasil seeks to be available to its customers in the channels they prefer, either in person or remotely. The face-to-face service units are constantly adapted to adapt to changes in the volume of services provided, so as to be ready to provide excellent service to BB customers.”
The bank said it had 2,871 branches as of September 2022, and that the December number will be released in the next balance sheet. Read what he said about the market:
“Bradesco has promoted a structural change in its service model, transforming part of its branches into business consulting units, both for investments and for loans to individuals and companies.”
Within this optimization process, some branches went through an adaptation of their physical size and others through a merger of overlapping units, such as, for example, those located a few meters from each other. The transformation of the service model and optimization of the physical presence allows Bradesco to be more efficient in managing its costs. Customers continue to have a large physical presence across the country.”
“The bank is present in all municipalities in Brazil through its network of branches, business units and banking correspondents that have the most up-to-date financial technology to provide services. It is worth adding that currently 98% of transactions are made through the bank’s digital channels.”
“Itaú Unibanco’s physical branches throughout Brazil continue to play a relevant role as more humanized spaces for relationship and consultancy. Face-to-face service continues to be an important part of the transformation process the bank is going through and is increasingly integrated with digital – so that the customer can have quality service through any of them and define, based on their own demands, when to activate one or the other. In this context, and in view of the increased demand for service in other channels, such as the internet, cell phones and digital branches, the bank is constantly evaluating the adequacy of its branch network to the new needs of customers.”
“For Santander, the acceleration of the digital transformation has brought advances in the way of serving a customer who wants to be served with excellence wherever, whenever and wherever they are. From 2019 to October 2022, the Bank recorded a 56% growth in the number of customers accessing a digital channel (internet banking and mobile) – on average, there are more than 535 million online accesses per month. This brought more efficiency and convenience to consumers, allowing for the readjustment of the branch network, making room for the expansion of remote service and the Bank’s physical presence in the interior of Brazil, where there is potential to receive new stores.”
“In 2022, a large part of the reduction in the number of service points was due to the consolidation of branch codes at the Central Bank and not to the closure of addresses. In 2021 alone, 120 Santander stores were opened and, by the end of the third quarter of 2022, 35 had been opened.”
- Caixa Econômica Federal:
“CAIXA is present in more than 99% of Brazilian municipalities, with 53,300 service points, being the financial institution with the greatest capillarity in the country.”
“On 12/31/2022, the bank’s service network had around 4,300 service units, 3,372 branches and 926 service points. In 2021, there were 4,280 service units (3,372 branches and 910 service points); and in 2020, there were 4,17 thousand (3,372 branches and 797 service points).”
“The process of opening new units for the CAIXA Service Network evaluates, in addition to commercial bank criteria, the promotion of social, banking and digital inclusion of the Brazilian population.”
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