SÃO PAULO--(BUSINESS WIRE)--

Banks in Brazil are opting for more responsive core banking and payment platforms to fend off increasing market competition, according to a new research report published today by Information Services Group () (Nasdaq: ), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ Digital Banking Services report for Brazil finds growing competition from fintechs has led Brazil’s incumbent banks to focus on technologies that will improve their processes, business models and customer experience (CX). Banks are modernizing by migrating their legacy systems to the cloud to gain agility and flexibility and to better meet the needs of their customers, ISG says.

“The banking ecosystem is becoming more robust in Brazil with an increasing depth and variety of services,” said Owen Wheatley, lead partner, ISG Banking and Financial Services. “To remain flexible and competitive, banks are turning to an ecosystem made up of a complex network of systems and platform integrators, service providers and software providers.”

Brazil’s Central Bank is promoting the democratization and innovation of banking products and services, the ISG report says. Two of the key new services are Pix and Open Finance.

Introduced in 2020, Pix is an open instant payments infrastructure, a neutral platform that offers users broad access to the banking ecosystem on equal terms, resulting in greater competition in the market, the report says. According to the ISG report, Pix has quickly become the primary means of payment among Brazilians. Service providers played a critical role in developing Pix functionalities, building the necessary integrations to execute transactions within an established response time and implementing robust security mechanisms, ISG says.

Open Finance is a model for sharing financial information authorized by clients between institutions and is designed to make the financial market more open and accessible, the ISG report says. The goal is to increase competition among participating institutions by allowing them to offer products and services to their competitors’ customers. According to the ISG report, one of the peripheral benefits of Open Finance is that it is expected to improve overall CX when using financial products and services. While Pix is easily understandable and brings immediate concrete benefits, the value of Open Finance is less obvious and requires a collective effort from the agents involved to better explain its advantages and to make it less abstract, ISG says.

“As Open Finance gains traction, the banking environment in Brazil should become even more competitive,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Leading banks will be expected to constantly reinvent themselves, incorporating new technologies and offering an increasingly personalized and differentiated service.”

The report also examines the Brazilian Central Bank’s plans for releasing its own digital currency, known as Drex.

The 2023 ISG Provider Lens™ Digital Banking Services report for Brazil evaluates the capabilities of 30 providers across three quadrants: Core Banking Technology and Integration Services, Payment Modernization Technology Services and Banking Business Process as a Service.

The report names Accenture as a Leader in all three quadrants, while Capgemini, Compass UOL, Stefanini and TIVIT are named as Leaders in two quadrants each. Atento, Eviden and Teleperformance are named as Leaders in one quadrant each.

In addition, CI&T is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants.

The 2023 ISG Provider Lens™ Digital Banking Services report for Brazil is available to subscribers or for one-time purchase on this .

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this .

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: ) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit .

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