Tech Roundup: Big banks have their eyes on boomers

You’re reading The Brazilian Report’s weekly tech roundup, a digest of the most important news on technology and innovation in Brazil. This week’s topics: PIX encounters its first glitches, Brazil’s big banks targeting boomers, and the underfunded cybersecurity scenario in Latam. 

Brazilian boomers go digital. Big banks should take note

Brazilian senior citizens have become more and more digital amid the pandemic, especially when it comes to banking, according to the new Pace Pulse Report. This age group — traditionally more resistant to technology — is increasingly adopting new payment methods and more tech-savvy ways of consumption, such as delivery apps. As such, they are making more demands of their banks, which should keep a close eye on this trend. 

Profile. Unlike Millennials and Gen Zers, baby boomers are still more likely to prefer major private banks, as well as state-owned institutions. However, their demands are becoming more related to the digital world, having increased their use of a wide range of digital payment methods, from online bank transfers to payment apps and even contactless technology.

Gradual changes. As this transition to remote service is gradual, banks do not necessarily need to reinvent the wheel in order to meet their customer’s needs. More than half of senior citizens have resorted to using ATM machines or banking apps for services they used to carry out in physical bank branches.

• Roughly 18 percent are using messaging apps or email to communicate with their bank managers.

Why it matters. Besides being major banks’ most faithful customers, baby boomers have also been the least affected by income losses — as most are protected by pensions. Plus, they are more financially capable to weather the crisis, as nearly 60 percent have savings for more than six months.

• Pleasing these customers will be crucial to guarantee the loyalty of a demographic that is less likely to default.

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PIX faces its first hiccups

On February 11, the Central Bank’s instant transfer system PIX faced its first disruptions after two months in operation. While the cause remains unclear, instability was reportedly caused by a glitch...