September 12, 2017
Small banks have realized that digital accounts provide an opportunity to overcome barriers such as agency costs and physical distance from customers, allowing them to attract the previously unattainable share of consumers through technology.
For the big banks, free digital account opening is expensive. Since the Central Bank allowed banks to offer digital-only accounts in 2011, Itaú, Banco do Brasil and Bradesco have already launched and suspended their free digital account models. Two of them re-launched: Bradesco, which now charges for the service, and BB, which reshaped the model.
When digital accounts were authorized, it seemed like ...