President of Bradesco made predictions for the Brazilian economy during the “Foro Inteligência”

Last Wednesday (the 25th), the president of Bradesco, Octavio de Lazari Junior, spoke openly about economics, innovation, competition and was emphatic saying that Brazilian banks are strengthened for a second wave of Covid-19.

According to him, the provisions were calculated based on projections beyond the two most critical scenarios faced in the last 20 years – the crises of 2008 and of 2016. According to Lazari, the current default rate is “very low, much lower than expected”, but will certainly increase in the second quarter of 2021, with the end of emergency aid and the permanence of the high unemployment rate.

The new technologies applied to the financial system and the impacts on the banking sector were also highlighted in the debate with the President of Bradesco. Lazari advocated that Open Banking should have its start deadline extended. About PIX, he stated that there is no denying that this new technological reality affects the entire universe of banking business. He said bank transaction costs “are going to drop dramatically for people and that means less revenue from services and fees going into banks”.

As for Fintechs, for Lazari, they are not a matter of concern, unlike big techs. He stressed that there was no problem with competition, what worries him is that there is no regulatory symmetry, because banks are very regulated and regulatory asymmetry can destroy everything that has been built.

Check out the “Foro Inteligência” in full: