Gomes, Ad iana; Sil a, Thiago Ch is iano
A icle
Fas paymen , c edi and bank di e si ica ion: he impac
o Pix adop ion on he local c edi ma ke s uc u e
EconomiA
P o ided in Coope a ion wi h:
The B azilian Associa ion o Pos g adua e P og ams in Economics (ANPEC), Rio de Janei o
Sugges ed Ci a ion: Gomes, Ad iana; Sil a, Thiago Ch is iano (2024) : Fas paymen , c edi and bank
di e si ica ion: he impac o Pix adop ion on he local c edi ma ke s uc u e, EconomiA, ISSN
2358-2820, Eme ald, Bingley, Vol. 25, Iss. 2, pp. 377-392,
h ps://doi.o g/10.1108/ECON-11-2023-0199
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/329573
S anda d-Nu zungsbedingungen:
Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen
Zwecken und zum P i a geb auch gespeiche und kopie we den.
Sie dü en die Dokumen e nich ü ö en liche ode komme zielle
Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich
machen, e eiben ode ande wei ig nu zen.
So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen
(insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en,
gel en abweichend on diesen Nu zungsbedingungen die in de do
genann en Lizenz gewäh en Nu zungs ech e.
Te ms o use:
Documen s in EconS o may be sa ed and copied o you pe sonal
and schola ly pu poses.
You a e no o copy documen s o public o comme cial pu poses, o
exhibi he documen s publicly, o make hem publicly a ailable on he
in e ne , o o dis ibu e o o he wise use he documen s in public.
I he documen s ha e been made a ailable unde an Open Con en
Licence (especially C ea i e Commons Licences), you may exe cise
u he usage igh s as speci ied in he indica ed licence.
h ps://c ea i ecommons.o g/licenses/by/4.0/
Fas paymen , c edi and bank
di e si ica ion: he impac o Pix
adop ion on he local c edi
ma ke s uc u e
Ad iana Gomes
Uni e sidade Ca olica de B asilia, Dis i o Fede al, B azil and
Banco Cen al do B asil, B as�
ılia, B azil, and
Thiago Ch is iano Sil a
Uni e sidade Ca olica de B asilia, Dis i o Fede al, B azil
Abs ac
Pu pose –In his a icle, he esea ch objec i e is o empi ically in es iga e he e ec o he adop ion o he
B azilian ins an paymen sys em, Pix, on he local c edi ma ke s uc u e and he di e si ica ion o he
banking sys em in B azilian municipali ies.
Design/me hodology/app oach –By analyzing he da a, in his s udy, we compile and align da a om
supe iso y and public sou ces, co e ing he pe iod om 2019 o 2022 in B azil. As o 2014, B azil was comp ised
o 5568 municipali ies dis ibu ed ac oss i e egions: No h (450 municipali ies), No heas (1792), Midwes
(467), Sou heas (1668) and Sou h (1191), acco ding o he B azilian Ins i u e o Geog aphy and S a is ics (IBGE).
Ou analysis elies on he olume and quan i y o Pix o he ou s anding c edi ope a ions in B azil.
Findings –This a icle p o ides e idence ha he widesp ead adop ion o Pix has impac ed he inancial
s uc u e o municipali ies. This analysis o banking concen a ion in he coun y and municipali ies, based on
banking ela ionships, helped us assess whe he he adop ion o Pix had any co ela ion wi h he inc ease in
c edi lines. O e all, he esul s om he s a is ical ables sugges ha he adop ion o Pix may be ha ing a
posi i e impac on he local c edi ma ke s uc u e.
O iginali y/ alue –The o iginali y con ibu ion o he s udy is o ini ia e an in es iga ion in o he impac o
his ins an paymen sys em, Pix, on he B azilian eali y. Pix was launched in 2020, amid he COVID-19
pandemic, and had signi ican numbe s, such as o e 61% o he adul popula ion ha ing a leas one Pix key
egis e ed in a li le o e a yea ; abou 100 million people made a leas one paymen wi h Pix; and mo e han
1.4 billion ansac ions pe mon h, wi h 72% be ween indi iduals, as p esen ed by he REB 2021.
Keywo ds Fas paymen , Pix, C edi , Bank di e si ica ion
Pape ype Resea ch pape
1. In oduc ion
Elec onic eal- ime p ocessing, wen y- ou hou s a day, h ee hund ed and six y- i e days a yea ,
wi h immedia e a ailabili y o unds/ alues o he ecipien ’s use – his is he de ini ion p o ided
by he Eu opean Cen al Bank (ECB) o ins an paymen s. This de ini ion is also p esen ed by he
Commi ee on Paymen s and Ma ke In as uc u es (2016) o he Bank o In e na ional
Se lemen s (BIS) (2012,2019), wi h he pe spec i e ha a as paymen ensu es a inal c edi o
esou ces o he bene icia y, i.e. wi h uncondi ional and i e ocable access o hese esou ces. The
same BIS Commi ee emphasizes ha he e minology (“ins an ,” “immedia e,” “ eal- ime” o
“ as e ” paymen s) and he cha ac e is ics o as paymen s a y om coun y o coun y.
EconomiA
377
© Ad iana Gomes and Thiago Ch is iano Sil a. Published in EconomiA. Published by Eme ald
Publishing Limi ed. This a icle is published unde he C ea i e Commons A ibu ion (CC BY 4.0) licence.
Anyone may ep oduce, dis ibu e, ansla e and c ea e de i a i e wo ks o his a icle ( o bo h
comme cial and non-comme cial pu poses), subjec o ull a ibu ion o he o iginal publica ion and
au ho s. The ull e ms o his licence may be seen a h p://c ea i ecommons.o g/licences/by/4.0/legalcode
Da a a ailabili y: The au ho s do no ha e pe mission o sha e da a.
The iews exp essed in his pape a e hose o he au ho s and do no necessa ily e lec hose o he
Cen al Bank o B azil (BCB).
The cu en issue and ull ex a chi e o his jou nal is a ailable on Eme ald Insigh a :
h ps://www.eme ald.com/insigh /1517-7580.h m
Recei ed 30 No embe 2023
Re ised 31 Janua y 2024
8 Feb ua y 2024
7 Ma ch 2024
12 Augus 2024
Accep ed 13 Augus 2024
EconomiA
Vol. 25 No. 2, 2024
pp. 377-392
Eme ald Publishing Limi ed
e-ISSN: 2358-2820
p-ISSN: 1517-7580
DOI 10.1108/ECON-11-2023-0199
These e minological and a ibu e di e ences a e ela ed o he his o ical eme gence o
as paymen s o e ime. Despi e he ea ly implemen a ion o some as paymen ea u es in
paymen sys ems in coun ies such as Japan (1973), Ko ea (1993, wi h mobile au hen ica ion
since 2007), Mexico (1995) and Swi ze land (1987), he new eali y o eal- ime ans e
p ocessing, ollowing he abo e de ini ions, began o eme ge wi h mo e simila
cha ac e is ics o hose we ha e oday in he Uni ed Kingdom wi h he UK Fas e
Paymen s Se ice (FPS) in 2008. Since hen, paymen sys ems ha e been eme ging in
coun ies such as China, wi h he In e ne Banking Paymen Sys em (IBPS), widely used by
Alipay (Alibaba) and WeCha Pay (Tencen ), and he Uni ed S a es, wi h he de elopmen o
FedNow unde he scope o he Fede al Rese e (FED).
The e o e, due o i s globaliza ion, i is impo an o e lec , as Ha mann, Gijsel, Plooij,
and Vandeweye (2019), on how as paymen s a e becoming he new no mal. This global
ans o ma ion o he ins an paymen sys em as a new no mal b ings a dis up i e change
ha has al e ed he dynamics o inancial low, knowledge exchange and new o ms o
business, being cen al o new ace s o economic ac i i y ha a e un olding. Fo example,
he o maliza ion o money ans e s helps p omo e he inancial inclusion o ini ially
unbanked poo e amilies, con ibu ing o explaining he e ec s o ins an paymen s on he
economy. Mo eo e , he ease o inancial exchange gene a es o ces o inancial inclusion o
amilies ha can only p o e hei c edi wo hiness h ough ans e lows iden i ied by
inancial ins i u ions (Roche & Pelle ie , 2008).
Cen al Bank o B azil (BCB) needed wo yea s be ween he decision o c ea e Pix, B azil’s
ins an paymen sys em, i s de elopmen and i s ac ual launch. The decision-making p ocess
began in 2018 and was p ac ically o malized in No embe 2020. Howe e , he his o y o Pix
is linked o he egula o y amewo k o Law No. 12.865/2013, which ga e ise o paymen
schemes and g an ed he Cen al Bank he au ho i y o egula e exis ing and new paymen
schemes, as well as hei es ablishmen , ope a ion and o e sigh .
The de ini ion o paymen schemes, as desc ibed in he a o emen ioned law, e e s o a se
o ules and p ocedu es go e ning he p o ision o a speci ic paymen se ice o he public,
which is accep ed by a ecipien , wi h di ec access by end-use s, paye s and ecipien s. In
addi ion o his de ini ion, o aid in unde s anding he ope a ion and commi men o Pix, he
de ini ion o a paymen schemes’ ounde can be in oduced as he legal en i y esponsible o
he paymen schemes and, when applicable, o he use o he b and associa ed wi h he
paymen schemes. Finally, we in oduce he de ini ion o a paymen se ice p o ide , de ined
as a inancial ins i u ion o paymen ins i u ion ha p o ides paymen se ices o an
end-use .
Pix is a paymen scheme ins i u ed by BCB ha plays wo impo an oles one as a
egula o , es ablishing he ope a ional ules, and ano he one as a manage o ope a ional
pla o ms. This wo- ie s uc u e p omo es a s anda dized, compe i i e, inclusi e, secu e
and open en i onmen , enhancing he o e all paymen expe ience o end-use s. Thus, Pix
has he s uc u e o a scheme wi h a paymen se ice p o ide (PSP), which is he inancial
ins i u ion o paymen ins i u ion whe e he ecei ing use main ains an accoun o c edi
eceip , wi h he ounde o he scheme being he Cen al Bank, as he en i y ha es ablishes
he ules. PSPs di ec ly o indi ec ly access he Di ec o y o T ansac ional Accoun
Iden i ie s (DICT). Indi ec access o he DICT by he ini ia ing pa icipan mus be
conduc ed h ough a Pix pa icipan wi h di ec access o he DICT, and all di ec Pix
pa icipan s mus be di ec pa icipan s in he Ins an Paymen s Sys em (SPI) [1], which is
he cen alized and unique in as uc u e o se ling ins an paymen s be ween di e en
ins i u ions in B azil. The ope a ion o he SPI was conduc ed by he BCB and began in 2020.
The objec i es o B azil’s ins an paymen sys em a e o inc ease e iciency and
compe i i eness, s imula e he digi iza ion o he paymen ma ke , p omo e inancial
inclusion and ill gaps in he cu en ly a ailable paymen ins umen s acco ding o Angelo
ECON
25,2
378
Dua e, Jon F os , Leona do Gambaco a, P iscilla Koo Wilkens and Hyun Song Shin (BIS,
2022b). Pix is an example o how he Cen al Bank suppo can in luence he use o a new
paymen sys em by p o iding ule suppo and eliabili y o he use . Fu he mo e, an
en i onmen wi h a le el o in e ope abili y, as demons a ed by Pix, p o ides an
addi ional s imulus o compe i ion by p omo ing lowe cos s and g ea e inancial
inclusion.
Ou pape ela es o he eme ging li e a u e on he impac o Pix on he c edi demand and
bank di e si ica ion. Ou main con ibu ion is o shed ligh on he in luences o a as
paymen on lending beha io , mo e compe i i e banking sys em and inancial inclusion.
Pix was launched in 2020, amid he COVID-19 pandemic, and i had signi ican numbe s,
such as o e 61% o he adul popula ion ha ing a leas one Pix key egis e ed wi hin jus o e
a yea ; abou 100 million people made a leas one paymen wi h Pix; and mo e han 1.4 billion
ansac ions pe mon h, wi h 72% be ween indi iduals, as p esen ed by he REB 2021. The
impac o inancial inclusion b ough abou by Pix has inc eased possibili ies by p o iding an
al e na i e o dealing solely wi h adi ional banks, enabling use s o a oid high c edi and
debi ca d ees, and opening new a enues o c edi access (BIS, 2022a,b). As mo e people
pa icipa e in he inancial sys em, a g ea e a ie y o c edi line op ions a e eme ging.
Acco ding o he T easu y Depa men , he opening o businesses unde he Indi idual
En ep eneu modali y – which includes indi idual mic oen ep eneu s (MEIs) – eached
2.663.309 mic oen ep eneu s in 2020, ep esen ing an 8.4% inc ease compa ed o 2019.
Small and medium-sized businesses usually lack a his o y o ela ionships wi h majo banks,
making i challenging o access c edi . The c ea ion o digi al accoun s o legal en i ies
enables, h ough he ans e o money lows ia ins an paymen sys ems, public and
p i a e banks o assess he inancial capaci y o he company o acqui e c edi .
I is possible o say ha inancial inclusion inc eased since Law 12.865/2013, Pix plays a
signi ican ole in his de elopmen . Pix has helped o make paymen ansac ions cheape
han be o e, which in u n has made i possible o o e mo e a o dable se ices o he
needies popula ions. The i s s ep was he opening o he ma ke , which acili a ed he
c ea ion o paymen ins i u ions and imp o ed access o popula ions p e iously
unde se ed by banks. Wi h Pix, he in e es o he unbanked popula ion in banking
se ices inc eased. Be o e Pix, i was only possible o ha e p e- and pos -paid accoun s.
While access o pu chases and bill paymen s was al eady adequa e, ans e s emained
expensi e o a la ge pa o he popula ion due o ees associa ed wi h TED and DOC, bo h
manne s o make money ans e . Fu he mo e, ecei ing paymen s became cheape and
easie wi h Pix. Conside he e olu ion o low-income sel -employed indi iduals, such as day
labo e s, b icklaye s and popco n endo s.
On Cen al Bank o B azil websi e, paymen ins i u ions a e de ined as “ hose ha enable
ci izens o make paymen s independen ly o banks and o he inancial ins i u ions. Wi h
mo able inancial esou ces, such as h ough a p epaid ca d o a mobile phone, use s can
ca y unds and pe o m ansac ions wi hou needing cash (au ho ’s emphasis).
Thanks o in e ope abili y, use s can also send and ecei e money o and om
banks and o he paymen ins i u ions (au ho ’s emphasis).”
The mone a y au ho i y, in he same publica ion, also highligh s he impo ance o hese
paymen se ices p o ided no only by paymen ins i u ions bu also by inancial
ins i u ions, pa icula ly banks, inance companies and c edi unions. The signi icance o
Law 12.865/2013 is he subjec o a sepa a e a icle by he au ho .
The e o e, he objec i e o his esea ch is no o discuss he cos o c edi o how in echs,
pee - o-pee loan companies (SEP), di ec c edi companies (SCD) and banks compe e o o e
c edi o hei cus ome s. Ra he , he esea ch aims o highligh he ac ha Pix se ed as he
d i ing o ce, o mo e p ecisely, he ca alys o de elopmen s ha migh ha e o he wise
aken a longe ime o ma e ialize.
EconomiA
379
Thus, he g ea e he banked popula ion, he mo e compe i ion he e is among playe s o
cus ome s and se ices. Acco ding o Box 7 o he BCB’s 2021 Banking Economy Repo , he
opening o digi al accoun s p omo es inancial inclusion, no only a he indi idual le el, as
had been happening o some ime wi h he en y o new playe s such as in echs and
companies om o he sec o s bu also a he legal en i y le el. In he B azilian case, he
COVID-19 pandemic accele a ed changes in how many B azilians conduc hei inancial
ansac ions, s imula ing he digi iza ion p ocess. The inc eased access o online se ices
hea s he local inancial and e ail sec o s. The popula ion has easie access o o he o ms o
inancial ansac ions and c edi lines. Wi h he s eamlining o inancial exchanges,
inancial ins i u ions can be e de e mine he amoun o c edi ha can be o e ed o
cus ome s.
This a icle examines whe he he adop ion o he Pix, B azil’s ins an paymen sys em,
has changed he local c edi ma ke s uc u e. We analyze a unique municipali y-le el da a
using a di e ence-in-di e ences app oach, and we ind ha a widesp ead adop ion o as
paymen s in municipali ies associa es wi h a mo e di e si ied local c edi ma ke . Ou esul s
sugges ha he inc eased inancial inclusion pe mi ed by Pix, especially in hose
municipali ies ha adop ed o a g ea e ex en he as paymen s solu ion, a ac ed mo e
inancial ins i u ions o ope a e wi h local bo owe s. This mo e di e si ied local inancial
ecosys em may explain he educ ion in local bank concen a ion. Ou e en s udies indica e
ha hese s uc u al changes we e no sho -li ed, as ou mon hly poin es ima es a e s able
in a wo-yea window a e he launch o Pix. So, we can say ha his pape p o ides no el
empi ical e idence o po en ial changes in bank c edi ma ke s b ough by as paymen s
solu ions.
Rega ding he da a, agg ega ion by locali ies pe o med using mon hly banking s a is ics
wi h a public da ase main ained by he BCB a he bank b anch and locali y le el. The
He indahl-Hi schman Index (HHI) o local c edi was calcula ed as he squa ed c edi sha e
o each bank in ha locali y.
The pape is o ganized as ollows: Sec ion 2 p esen s he li e a u e e iew. Sec ion 3
desc ibes da a and some s ylized ac s and explains ou empi ical s a egy and how we ackle
iden i ica ion issues Sec ion 4 p esen s ou main independen a iable. Sec ion 5 p esen s he
empi ical esul s. Sec ion 6 summa izes he inal conside a ions.
2. Li e a u e e iew
The heo e ical and empi ical li e a u e p esen esul s ega ding he e ec s o as e
paymen on c edi supply. Some o hese pape s employ agg ega e da a on c edi along wi h
o he mac oeconomic p oxies. Fo example, he le el o local labo ma ke s, o empi ically
e alua e his link. Al hough ou wo k is aligned wi h his body o li e a u e, ou app oach is
inno a i e as we es whe he he HHI, es ablishes a concep ual link be ween he olume and
numbe o Pix ansac ions and ou s anding c edi ope a ions in B azil. In o he wo ds, i
p o ides a measu e o di e si y wi hin inancial c edi ope a ions by using he HHI measu e.
This connec ion is highligh ed h ough he analysis o c edi di e si ica ion using locali y
le el as paymen s da a om B azil. To he bes o ou knowledge, ou pape is he i s o
seek o es ablish his ela ionship. The esea ch we ini ia e may assis in he de elopmen o
public policies aimed a accele a ing inancial inclusion, especially among popula ions
wi hou access o banking se ices.
Ou pape is closely ela ed o BIS (2022a). They examine he case o An G oup, which
in oduced paymen se ices h ough QR codes, g an ing o line me chan s access o digi al
paymen se ices. The da a collec ed om hese se ices a e u ilized o de e mine c edi
p o ision o me chan s. The indings indica e ha he adop ion o QR codes o paymen
se ices enables o line me chan s no only o access c edi om majo ech companies bu
ECON
25,2
380
also, by being included in he c edi egis y a e ecei ing signi ican ech loans, o gain
access o unsecu ed bank c edi . Addi ionally, he au ho s epo posi i e eal e ec s o big
ech c edi usage, especially e iden du ing COVID-19 pandemic, whe e he eco e y in
ansac ions was 20% mo e p onounced o use s o big ech c edi compa ed o non-use s.
Ou pape also ela es o in echs li e a u e as Ding, Chong, Kuo, and Cheng (2017) who
analyze in ech ad ancemen s owa d o p oduc s and inancial se ices becoming hem
mo e accessible o a pa o popula ion. The au ho s also discuss wha is i al o achie ing
ull inancial and social inclusion o consume s li ing in egions wi hou he in as uc u e
o an u ban economy, o else, ensu ing a le el playing ield helps shed ligh on inancial
inclusion and p og ess.
Rega ding in ech and BigTech inno a ion, F os , Gambaco a, Huang, Shin, and
Zbinden (2019) also b ing some in o ma ion abou paymen s. Fo example, he sha e o
BigTech c edi in o al FinTech c edi is highes in Ko ea, A gen ina and B azil, all o which
ha e ela i ely small FinTech c edi ma ke s. China has he mos p onounced ac i i ies on
BigTech i ms in c edi p o ision, bu c edi ac i i y would ha e also g own in o he
coun ies, al hough on a smalle scale. This is pe haps due o he p esence o incumben
bank-based paymen sys ems and, in some cases, egula ion. In La in Ame ica, Me cado
Li e had ou s anding c edi o o e $127 million in B azil, A gen ina, and Mexico as o la e
2017. The au ho s show ha a ailable da a sugges ha China is by a he la ges ma ke ,
wi h BigTech mobile paymen s o consump ion eaching he Uni ed S a es, India, and B azil
ollow a a dis ance, compa ing he GDP o all o hem. B azil is cha ac e ized as one o he
i e eme ging coun ies wi h apid economic g ow h and an expanding middle class bu
wi hou he adi ional inancial in as uc u e o suppo his new demand. Rela i ely high
p opo ions o he popula ion a e unde se ed by exis ing inancial se ices p o ide s, while
alling p ices o sma phones and b oadband se ices ha e inc eased he digi ally ac i e
popula ion ha inancial echnology i ms a ge .
Following he impac o in ech inno a ion, Claessens, F os , Tu ne , and Zhu (2018) use
CCAF, B ismo and WDZJ da a in c oss-sec ion o discuss he g ow h o FinTech and which
ha e been he d i e s o in ech c edi . They analyze consume s in bo h ad anced and
eme ging ma ke economies who ha e inc easingly adop ed digi al inancial se ices ha
a e mo e con enien . They de ine he de elopmen o in ech c edi as c edi ac i i y
acili a ed by elec onic pla o ms ha a e no ope a ed by comme cial banks. They wo k
wi h GDP pe capi a and a squa ed GDP pe capi a.
In he con ex o social inclusion, in echs play an impo an ole, Ding e al. (2017) w i e
abou how a in ech holds boundless po en ial, once e e y day, new pla o ms and
echnologies a e in oduced o he ma ke , challenging he bounda ies o adi ional business
models. In China, o example, wha gene a ed subs an ial imp o emen s in inancial
inclusion was ansac ion da a ob ained om he MYbank sco ing sys em by i ms o o e
c edi o hei cus ome s, who ypically canno p o ide su icien documen a ion o apply o
egula bank c edi . The au ho s b ing up he case o An Financial, which ocuses on he
unde se ed ma ke s by he majo Chinese banks: low-income indi iduals, especially hose
in u al a eas. This ac is ela ed o ou esul s in his pape , as we obse ed a highe Pix
adop ion among low-income indi iduals.
Digi aliza ion by echnology p o ides highe lending lexibili y, mobile phones and
in echs play an impo an ole in he g ow h o ma ke c edi ac i i ies and inance. Fi s ,
his kind o analysis helps shed ligh on he changing banking ma ke s uc u e w ough by
echnology, which allows mo e inclusion o he unbanked popula ion.
Co nelli, F os , Gambaco a, Rau, Wa d op, and Ziegle (2020) es ima ed ha he low o
new o ms o c edi eached USD 223 billion and USD 572 billion in 2019, espec i ely. Da a
on mobile phones pe 100 pe sons we e included. The pape has documen ed he ecen
g ow h o in ech c edi , p o ided by nonbank online pla o ms, and big ech c edi , p o ided
EconomiA
381
by la ge companies whose p ima y business is echnology, some imes in pa ne ship wi h
adi ional inancial ins i u ions. The au ho s assessed he economic and ins i u ional ac o s
d i ing he g ow h and adop ion o in ech and big ech c edi .
In he con ex o he ede al QuickPay e o m o 2011, Ba o and Nanda (2020) in es iga e
he impac o as e paymen s on i m-le el employmen . Acco ding o he pape , QuickPay
signi ican ly accele a ed paymen s o a subse o small business con ac o s o he US ede al
go e nmen , educing he ime aken om in oice app o al o paymen by hal , om 30 o
15 days. Fo ea ed i ms, he e o m, he e o e, pe manen ly educed he wo king capi al
needed o sus ain a dolla o sales wi h he go e nmen . The accele a ion impac ed USD 70
billion in annual con ac alue, a ec ing a b oad ange o small businesses ac oss i ually
e e y indus y sec o and US Coun y due o he massi e oo p in o ede al go e nmen
p ocu emen .
Ano he example o go e nmen implemen a ion, Aga wal, Kigabo, Minoiu, P esbi e o,
and Sil a (2021) analyze he e ec o a na ionwide, go e nmen -subsidized mic oc edi
expansion p og am ha c ea ed an ex ensi e ne wo k o communi y- ocused sa ings and
c edi coope a i es (Umu enge SACCOs, hence o h U-SACCOs) ac oss he 416
municipali ies in Rwanda. The p og am esul ed in mo e han 90% o Rwandans esiding
wi hin h ee miles o a U-SACCO. Thei iden i ica ion s a egy exploi s ime-se ies a ia ion
in he opening o U-SACCOs ac oss municipali ies, coupled wi h adminis a i e mic oda a
on he lending ac i i ies o all inancial ins i u ions. The pape uses a comp ehensi e c edi
egis e wi h de ailed in o ma ion on he uni e se o loans o indi iduals in he en i e coun y
o a o al o nine yea s a ound he implemen a ion o he p og am (2008–2016).
3. Da a
We compile and me ge public and p op ie a y da ase s o un ou empi ical speci ica ions.
Fi s , we ex ac Pix da a om No embe 2020 o Oc obe 2022, a p op ie a y da ase
main ained by he BCB ha p o ides om he only cen alized in as uc u e o ins an
paymen s se lemen be ween di e en paymen se ice p o ide s in B azil, Ins an
Paymen Sys em (SPI). We ex ac numbe o Pix, ha is, ansac ions se led daily in SPI
( ansac ions se led in he pa icipan ’s books), conside ing paymen o de s and inancial
olume o Pix, ha is, ansac ions se led daily in SPI ( ansac ions se led in he
pa icipan ’s books), conside ing paymen o de s. We ake he daily o al PIX olume pe
municipali y in B azil, and we agg ega e as mon hly da a. Al hough he adop ion o Pix
a ec ed each popula ion le el and each egion o he coun y di e en ly, he olume
ansac ed was high. A ound 17 million B azilians who had ne e made a bank ans e
made a Pix o he i s ime, as epo ed in he 2021 Financial Ci izenship epo .
We ex ac bank b anch da a om Janua y 2019 o July 2022 o he Mon hly Banking
S a is ics by Municipali y (ESTBAN), a public da ase main ained by he BCB ha p o ides
summa ized balance-shee in o ma ion o each bank b anch in B azilian municipali ies o e
ime. We agg ega e ESTBAN balance shee da a ac oss b anches o each municipali y
aken in a ime.
Rega ding locali ies, we ex ac sociodemog aphic and geog aphical municipali y-le el
da a in o ma ion om he B azilian Ins i u e o Geog aphy and S a is ics (IBGE) public
da ase . We collec he GDP pe capi a and popula ion om all he 5,570 B azilian
municipali ies since 2020 o 2022.
We also compile COVID-19 epidemiological bulle ins om he Minis y o Heal h (public
da a) om Feb ua y 2020 o Ma ch 2022 o cons uc a a iable o p e alence (accumula ed
cases) and dea hs accumula ed in each locali y. These bulle ins con ain he numbe o
COVID-19 cases pe municipali y daily.
ECON
25,2
382
These ou da ase s allow us o connec in o ma ion abou how he use o Pix is co ela ed
wi h inancial inclusion, bo owe s, c edi ope a ions, inc eased banking compe i ion and
egional socioeconomic condi ions. Ou me hodology co ela es a measu e o concen a ion
and di e si ica ion o he local inancial sys em, HHI, wi h he adop ion o Pix based on
olume o Pix a municipal le el. This concen a ion measu e is he HHI, which in ou model
is he dependen a iable. The HHI was cons uc ed by he au ho s om ESTBAN da a
using he o mula below:
H H I c edi i ¼X
b∈Bi �To al C edi ib
Ci y le el o To al C edi ib �2
(1)
in which iand index locali y, and ime ( om Janua y 2019 o July 2022). Bi is he se o
banks in municipali y ia ime . This index hen luc ua es be ween 0 and 1, in which highe
alues indica e mo e concen a ed ma ke s. In he ex eme, when i eaches 1, he ma ke is a
monopoly.
We use ope a ions om ESTBAN da ase o cons uc H H I c edi i a es as dependen
a iables in he second speci ica ions. We cons uc his a iable as he sum o he o al c edi
di ided by he le el o o al c edi o each ci y, squa ed o he calcula ion o c edi HHI. The
H H I c edi i is he squa e o he c edi sha e o each bank p esen in ha municipali y.
The a iable To al C edi ib was cons uc ed om en y 160 o c edi ope a ions om
Es ban. Es ban da ase we e used also o cons uc a iable Ci y le el o To al
C edi ib , he sum o To al C edi ib . They a e shown in Appendix A ha epo s
he summa y s a is ics o a iables o he empi ical speci ica ions in his pape . The da ase
in ol es inancial and economic indica o s o municipali ies.
Plus, acco ding o in o ma ion om he Cen al Bank o B azil [2], Es ban da a a e by
municipali y and a e gene a ed mon hly wi h in o ma ion om he Mon hly Banking
S a is ics, co e ing he mon hly posi ion o he balances o he main balance shee i ems o
comme cial banks and mul iple banks wi h a comme cial po olio, by municipali y,
headings o Cash, Deposi s, Secu i ies, Loans, Financing, Ru al Financing and Real Es a e
Financing. These a iables a e calcula ed in p opo ion o he g oss domes ic p oduc (GDP).
So, his way, we can ha e an idea o how much o he popula ion has access o c edi
ope a ions and, consequen ly, inancial inclusion.
F om his con ex , we choose he HHI index because o he numbe o con ex s we can use
i , once we can measu e concen a ion in many di e en a eas, as i se es as a sc eening
elemen o egula o s and as a planning ool o policy make s. On Fede al Rese e, we can
ind an HHI speci ica ion e y simila o ou s, in which “. . .HHI is used in a a ie y o
indus ies. In he case o banking, he HHI is calcula ed by summing he squa e o he sha e o
deposi s o each bank wi hin a pa icula geog aphical a ea.”
We highligh ha B azil is a con inen al coun y wi h e y he e ogeneous a eas in e ms
o size, demog aphy, weal h, income and human de elopmen . In Appendix A, we can see
in o ma ion abou popula ion, as loca ions ha ha e a high popula ion a e age compa ed o
o he loca ions, which shows popula ion he e ogenei y and e en popula ion concen a ion in
some a eas. In ela ion o GDP, he e ogenei y con inues, ha is, he e is a concen a ion o
weal h in ce ain loca ions. In ela ion o GDP pe capi a, his di e ence dec eases since he e
is a mo e symme ical dis ibu ion o pe capi a weal h be ween loca ions. When compa ing
popula ion, GDP and GDP pe capi a da a wi h Pix olume da a, we no iced ha he e is a
co ela ion be ween he da a, as he a e age Pix olume is a ound nine imes g ea e han he
median. In his way, he di e ences be ween hese loca ions a e conside ed when designing
ou s a egy. I is impo an o con ol o di e ences be ween loca ions o ensu e hey do no
in luence ou esul s. Some a iables a e c ea ed and placed in he p e-Pix pe iod and in he
EconomiA
383
pos -Pix pe iod so ha he e is no claim o endogenei y and hus p o ing ha he e was an
ex e nal ac o o he co ela ion.
COVID-19 a iables a e placed as co a ia es o con ol whe he he e a e o he ac o s
( ha we a e no con olling) in luencing Pix. Regions wi h highe p e alence o COVID-19 a e
mo e likely o en o ce public heal h measu es such as b oad social dis ancing, lockdowns and
qua an ines. These measu es can signi ican ly impac economic ac i i ies, including c edi
and consump ion, po en ially leading o a dec ease in local economic ac i i y. Appendix A
illus a es ha ce ain egions exhibi a no ably high a e age numbe o COVID-19 cases,
wi h some expe iencing highe mo ali y a es han o he s.
Thus, i is impo an o include his a iable o add ess po en ial con ounde s in ou
empi ical se up. This inclusion is c ucial o a guing ha luc ua ions in Pix olume a e no
solely a ibu ed o indi iduals being con ined o hei homes du ing he pandemic. I a
municipali y is acing a high in ensi y o COVID-19 cases, locals would be p omp ed o s ay
home mo e equen ly, a ec ing hei u iliza ion o Pix o paymen s, he eby po en ially
co ela ing COVID-19 wi h c edi - ela ed a iables, such as he HHI in he c edi ma ke .
Mo eo e , amids his pandemic, one could a gue o he go e nmen ’s suppo du ing he
COVID-19 pandemic was ela ed o he local in ensi y o COVID-19.
4. Pix adop ion ac oss municipali ies
This sec ion de ines ou main independen a iable: H igh Adop ion o Pixi. We
measu e he high adop ion o Pix om he olume o Pix ansac ions. We me ge ESTBAN
da abase wi h mon hly he Pix and IBGE da abases. The i s s ep o cons uc he
independen a iable is o calcula e he mean o olume o Pix ansac ions o each
municipali y om No embe 2020 o Oc obe 2022. Then, we disc e ize his con inuous
a iable in o a bina y a iable named H igh Adop ion o Pixi o iden i y municipali ies
wi h a high adop ion o Pix as ollows. We se H igh Adop ion o Pixi¼1 o all
municipali ies iin he uppe median o he dis ibu ion and 0, o he wise.
Figu e 1 displays he geog aphical dis ibu ion o he a e age olume o Pix o e GDP
(be o e he disc e iza ion in o he a iable H igh Adop ion o Pixi). We can see how well
Pix adop ion can be ela ed o he banking popula ion in locali ies in small ci ies in egions a
om he big capi als o he sou heas . One o he ac o s ha could explain i s in luence on
c edi demand and supply on he popula ion who did no ha e he oppo uni y be o e is he
possibili y o make money ans e ansac ions h ough digi al accoun s. The po en ial
e ec s due o he ela ionship be ween he high adop ion o Pix and he banking o he
popula ion helped by in echs a e impo an o he esea ch.
Figu e 2 displays he geog aphical dis ibu ion o ou main independen a iable
H igh Adop ion o Pixi. We can see in which loca ions and egions he adop ion o Pix
has occu ed. The map shows ha i has been widely accep ed in he no he n and
no heas e n egions o he coun y. These a e a eas whe e he popula ion may no be as
banked as in o he egions o he coun y.
We now examine how ou bina y a iable H igh Adop ion o Pixico ela es wi h
municipali y-le el obse ables. Fo ha , we use H igh Adop ion o Pixias he
dependen a iable and he municipali y-le el a iables as co a ia es. We es his
hypo hesis empi ically. We un he ollowing econome ic speci ica ion in a c oss-sec ion:
H igh Adop ion o Pixi¼βT3Co a ia esiþ
ε
i(2)
in which iindexes he municipali y. Co a ia esiis a ec o o obse ables a he municipali y le el
composed o he ollowing e ms: he local COVID-19 p e alence as a sha e o he local popula ion
du ing 2020; popula ion, GDP pe capi a and HHI c edi (e alua ed using Eq. (1)) in 2019.
ECON
25,2
384
behind ou esul s is inancial inclusion p omo ed la gely by in echs and non-banking
ins i u ions. In gene al, ou esul s indica e ha he e ec on he di e si ica ion o he local
c edi ma ke was mo e p onounced in egions wi h less inancial de elopmen . This again
highligh s he ex en o which inancial inclusion has bene i ed a pa o he popula ion ha
p e iously had no access wi h he in oduc ion o a cheap as paymen s sys em.
Finally, his a icle also p o ides e idence ha he widesp ead adop ion o Pix has
impac ed he inancial s uc u e o municipali ies. This analysis o banking concen a ion in
he coun y and municipali ies, based on banking ela ionships, helped us assess whe he he
adop ion o Pix had any co ela ion wi h he inc ease in c edi lines. O e all, he esul s om
he s a is ical ables sugges ha he adop ion o Pix may be ha ing a posi i e impac on he
local c edi ma ke s uc u e. The esul s a e s a is ically signi ican . Howe e , i is
impo an o no e ha ou esul s hold in he sho e m. Fu he esea ch is needed o
unde s and he long- e m impac s o as paymen s sys ems on local c edi ma ke s. So, ou
esul s show ha high adop ion o Pix has ela ion wi h he access o lending c edi and mo e
e ec i ely s eng hening inancial inclusion, bo h boos ed by he ole o digi aliza ion. The
examina ion o how he widesp ead adop ion o Pix has impac ed he inancial s uc u es o
municipali ies and egions in B azil will be he subjec o nex esea ch.
The objec i e o his esea ch is o be he i s o cons uc a imeline s a ing since he
in oduc ion o Law 12.865/2013, p og essing h ough in echs, he People’s Loan Socie y
(SEP), he Di ec C edi Socie y (SCD), and culmina ing wi h paymen schemes such as Pix
and c edi scheme. So, his is one o he imeline.
No es
1. “The Ins an Paymen Sys em (SPI) is he only cen alized in as uc u e o ins an paymen s
se lemen be ween di e en paymen se ice p o ide s in B azil. The SPI, ope a ed by he BCB, will
be launched in No embe 2020. The SPI is a Real Time G oss Se lemen (RTGS) sys em, which
means ansac ions a e se led as soon as hey a e p ocessed, on a one- o-one basis. Once se led,
ansac ions a e inal and i e ocable. The ins an paymen s (Pix) a e se led in speci ic-pu pose
accoun s held a he BCB by he di ec pa icipan s o he sys em. To sa egua d he esilience o he
sys em, no o e d a is allowed, which means he accoun canno ha e a nega i e balance.”
2. h ps://www.bcb.go .b /es a is icas/es a is icabanca iamunicipios
Re e ences
Aga wal, S., Kigabo, T., Minoiu, C., P esbi e o, A. F., & Sil a, A. F. (2021). Se ing he unde se ed:
Mic oc edi as a pa hway o comme cial banks. The Re iew o Economics and S a is ics,105(4),
780–797. doi: 10.1162/ es _a_01117, o hcoming.
Bank o In e na ional Se lemen s (BIS) (2012). Reassessing he impac o inance on g ow h. BIS
Wo king Pape s, #381.
Bank o In e na ional Se lemen s (BIS) (2019). Big ech in inance: Oppo uni ies and isks. BIS
Annual Economic Repo , Ch. III, June.
Bank o In e na ional Se lemen s (BIS) (2022a). Big Techs, QR code paymen s and inancial
inclusion. BIS Wo king Pape s, #1011.
Bank o In e na ional Se lemen s (BIS) (2022b). Cen al banks, he mone a y sys em and public
paymen in as uc u es: Lessons om B azil’s pix. BIS Wo king Pape s, # 52.
Ba o , J. N., & Nanda, R. (2020). The employmen e ec s o as e paymen : E idence om he
ede al quickpay e o m. The Jou nal o Finance,75(6), 3139–3173. doi: 10.1111/jo i.12955.
Claessens, S., F os , J., Tu ne , G., & Zhu, F. (2018). Fin ech c edi ma ke s a ound he wo ld: Size,
d i e s and policy issues. BIS Qua e ly Re iew, Sep embe .
EconomiA
391
Commi ee on Paymen s and Ma ke In as uc u es (2016). Fas paymen s – enhancing he speed
and a ailabili y o e ail paymen s, 154, No embe , Bank o In e na ional Se lemen s.
Co nelli, G., F os , J., Gambaco a, L., Rau, R., Wa d op, R., & Ziegle , T. (2020). Fin ech and big ech
c edi : A new da abase. BIS Wo king Pape s 887.
Ding, G., Chong, G., Kuo, C. D. L., & Cheng, T. L. (2017). F om An inancial o alibaba’s u al aobao
s a egy – how in ech is ans o ming social inclusion. Mimeo, New Yo k.
F os , J., Gambaco a, L., Huang, Y., Shin, H. S., & Zbinden, P. (2019). BigTech and he changing s uc u e
o inancial in e media ion. Economic Policy,34(100), 761–99. doi: 10.1093/epolic/eiaa003.
Ha mann, M., Gijsel, L. H. -V., Plooij, M., & Vandeweye , Q. (2019). A e ins an paymen s becoming he
new no mal? A compa a i e s udy. Occasional Pape s Se ies, No 229, Eu opean Cen al Bank.
Roche , E. & Pelle ie , A., (2008). Mig an wo ke s’ emi ances: Wha is he impac on he economic
and inancial de elopmen o sub-Saha an A ican coun ies? Qua e ly selec ion o a icles -
Bulle in de la Banque de F ance, (13), 103–120.
Fu he eading
Ca s ens, A., Claessens, S., Res oy, F., & Shin, H. S. (2021). Regula ing big echs in inance (Vol. 45).
New Yo k: BIS Bulle in.
Cha a, S., Gandu i, R., Pa adka , N., & Zhang, Y. (2021). Impac o ma ke place lending on
consume s’ u u e bo owing capaci ies and bo owing ou comes. Jou nal o Financial
Economics,142(3), 1186–1208. doi: 10.1016/j.j ineco.2021.06.005.
Co nelli, G., F os , J., Gambaco a, L., Mu, C., & Ziegle , T. (2021). Big ech c edi du ing he Co id-19
pandemic. New Yo k: Mimeo.
Fus e , A., Goldsmi h-Pinkham, P., Ramado ai, T., & Wal he , A. (2022). P edic ably unequal? The e ec s
o machine lea ning on c edi ma ke s. The Jou nal o Finance,77(1), 5–47. doi: 10.1111/jo i.13090.
Gambaco a, L., Huang, Y., Qiu, H., & Wang, J. (2019). How do machine lea ning and non adi ional
da a a ec c edi sco ing? New e idence om a Chinese in ech i m. BIS Wo king Pape s, 834.
Gambaco a, L., Huang, Y., Li, Z., Qiu, H., & Chen, S. (2022). Da a s colla e al. Re iew o Finance,
27(2), 369–398. doi: 10.1093/ o / ac022.
Hau, H., Huang, Y., Shan, H., & Sheng, Z. (2021). Fin ech c edi , inancial inclusion and en ep eneu ial
g ow h (pp. 21–47). Swiss Finance Ins i u e Resea ch Pape .
Huang, Y., Zhang, L., Li, Z., Qiu, H., Sun, T., & Wang, X. (2020). Fin ech c edi isk assessmen o
SMEs: E idence om China. IMF Wo king Pape s, 193. doi: 10.5089/9781513557618.001.
Ji, Y., Wang, X., Huang, Y., Chen, S., & Wang, F. (2021). An expe imen o in ech consume c edi in
China: A mixed s o y o liquidi y cons ain and liquidi y insu ance. New Yo k: mimeo.
Su i, T., Bha adwaj, P., & Jack, W. (2021). Fin ech and household esilience o shocks: E idence om digi al
loans in Kenya. Jou nal o De elopmen Economics,153, 102697. doi: 10.1016/j.jde eco.2021.102697.
Supplemen a y ma e ial
The supplemen a y ma e ial o his a icle can be ound online.
Co esponding au ho
Ad iana Gomes can be con ac ed a : [email p o ec ed],[email p o ec ed]
Fo ins uc ions on how o o de ep in s o his a icle, please isi ou websi e:
www.eme aldg ouppublishing.com/licensing/ ep in s.h m
O con ac us o u he de ails: [email p o ec ed]
ECON
25,2
392
