Digital currencies are also attracting investors, survey shows

04/03/2024

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Marcelo Billi — Foto: Divulgação

Most Brazilians are unfamiliar with investments and savings accounts are still the favorite alternative, but corporate bonds and digital currencies are gaining ground, according to a study by the Brazilian Association of Financial and Capital Market Entities (ANBIMA) and pollster Datafolha.

Six thousand Brazilians from different social classes and regions were surveyed about what investments they use. The majority (57%) of respondents say they are unfamiliar with investments or do not use them, compared with 58% in the previous year. The second-largest group (25%) says it uses savings accounts, compared with 26% in the last survey.

The third-largest group (5%) says it invests in certificates of bank deposit (CDBs), structured transaction certificates (COEs), debentures, agricultural credit bills (LCAs) and real estate credit bills (LCIs), compared with 4% in the previous year. These fixed-income securities saw an increase for the second consecutive survey.

The purchase and sale of real estate, investment funds, and digital currencies are tied in fourth place (4%). The share that invests in real estate and funds remained the same, but the population that invests in cryptocurrencies increased compared to the previous year (3%). Crypto assets gained ground in the survey for the second time in a row.

In addition, 3% of Brazilians leave their money at home or “under the mattress” and 2% invest in stocks, private pension plans, or Tesouro Direto (government bonds). Among these products, the only one that grabbed a larger share was Tesouro Direto, which was mentioned by only 1% of the respondents in the previous edition. In addition, 1% of those surveyed invest in coins or gold.

Marcelo Billi, ANBIMA’s head of sustainability, innovation, and education, says that most Brazilians who invest in savings accounts use them as checking accounts or to keep their money safe. He says that what Brazilians understand as savings accounts are often remunerated accounts where the balance earns money in digital banks.

“The word ‘poupança’ [savings] has more meanings than the typical savings account,” he said. “Savings accounts have a pedagogical role in preparing people for the world of investments. I think it will not lose relevance as an organization tool for most Brazilians. People know that other investments are better, but they are getting organized,” he said.

In Mr. Billi’s view, many factors contribute to the spread of investments beyond savings, such as the deepening of the financial market, investors’ search for more profitable investments at times of lower interest rates, and social media influencers, who popularized the conversation about financial investments in those platforms.

Young people are taking the lead in searching for investments beyond traditional savings accounts, he said. “Digital currencies are a phenomenon and the conversation about bitcoin has become very popular on social media. Corporate bonds such as CDBs are usually the number one investment when Brazilians leave savings accounts, “he said. “They are publicized as safer options that also offer better yields. Plus, the idea of lending money to a bank is better understood compared to funds, for example,” he said.

The study also showed that 37% of Brazilians invest in financial products now, compared with 36% the previous year and 31% two years ago. The rest of the population does not save money nor use financial products to save money.

*Por Julia Lewgoy — São Paulo

Source: Valor International

https://valorinternational.globo.com/