Digital Transformation of the Year: Bradesco
October 31, 2019
One of Brazil’s largest banks is charting its technological future with a digital bank that is attracting new customers and boosting efficiencies
Less than two years after its launch, Bradesco’s Next digital bank has 1.1 million clients, CFO Andre Rodrigues Cano said in a recent earnings call. The bank hopes to reach 1.5 million clients by the end of the year.
Next is a key feature of the bank’s ambitious digital transformation as it, like other legacy banks, confront the competitive challenge of fintech start-ups in Brazil. The goal isn’t just to stop them from poaching existing customers, but to attract a new audience of digital-savvy clients. Since its launch in 2017, Next has attracted 1.5 million accounts. What’s more, 77% of Next’s customers were new to Bradesco. And the business continues to grow, with the bank receiving 10,000 requests a day to open new accounts .
Bradesco’s digital push isn’t just limited to Next. Technology also plays a central role in the bank’s efforts to overhaul its back office operations and to increase sales via digital channels. Credit origination through digital channels in the individual segment totaled BRL 11.8 billion through the first half of 2019, an increase of 53%. The bank is also revamping its back-office operations to handle the new digital business.
Bradesco has also taken steps toward open banking to share information with third parties. It has been working on a platform called Bradesco Artificial Intelligence (BIA), which draws on cognitive computing technology developed by IBM’s Watson. The platform allows more than 1.4 million customers to check balances, ask questions and access other bank services through WhatsApp.
The bank also has partnerships with Uber and iFood that allows customers to interact with those services. This month, BIA became available on Amazon’s Alexa so customers can ask questions about their accounts.