Small Businesses in Brazil Embrace Digital Banking Amid Fiscal Digitalization Challenges
Brazilian small businesses show rapid growth in digital banking use but face complex challenges adapting to fiscal digitalization requirements.
- • Usage of banking apps on mobile phones among small businesses rose from 15% to 90% over ten years.
- • Internet banking adoption grew from 33% in 2015 to a projected 61% in 2025.
- • Physical banking visits dropped from 58% to 21% during this period.
- • Rapid changes in digital fiscal platforms and tax rules create compliance risks for small businesses.
- • Education and automation are key strategies to help small businesses manage digital fiscal duties.
- • Collaboration between public and private sectors is critical for successful digital fiscal compliance.
Key details
Small businesses in Brazil have dramatically increased their use of digital banking channels over the past decade, but simultaneously face significant challenges with the digitalization of fiscal obligations. According to a survey by Sebrae titled "Hábitos Financeiros dos Pequenos Negócios," 90% of small businesses accessed banking apps on personal phones in 2025, a steep rise from just 15% ten years ago. Internet banking usage is projected to rise to 61% in 2025, up from 33% in 2015, while physical banking visits are dropping sharply, with only 21% of entrepreneurs expected to visit bank counters this year compared to 58% a decade ago. Regional differences exist, with the Northeast showing higher use of banking correspondents (37%), whereas the Southeast (67%) and South (59%) demonstrate stronger adoption of internet banking. Women are embracing digital banking more than men, though older entrepreneurs still rely more on physical channels. Sebrae President Décio Lima recognized technology access as a key driver of this digital transformation but noted the need for wider adoption of more advanced tools.
However, alongside banking digitization, small businesses in Brazil face hurdles related to the rapid digitalization of fiscal duties. A joint study by Sebrae and Fundação Getulio Vargas (FGV) involving over 7,000 participants showed a 6% year-over-year increase in fiscal digitalization but highlighted persistent difficulties. Frequent changes in digital platforms and tax rules elevate the risk of sanctions and complicate compliance. Many small entrepreneurs turn to accountants for guidance. Fernando Ramos, an experienced accountant, stressed that fiscal digitalization is outpacing small businesses' adaptation capacity and emphasized accountants' educational roles. Automation of routine processes is seen as a solution to reduce errors and boost efficiency, potentially increasing competitiveness. Institutions like the Conselho Regional de Contabilidade de São Paulo (CRCSP) are offering courses to support digital inclusion. Tax specialist Márcio Martins highlighted the essential collaboration between public and private sectors to ensure small business owners understand and correctly implement electronic fiscal requirements, promoting legal security and business sustainability.
Overall, while Brazilian small businesses have embraced digital banking with remarkable speed, the ongoing digital transformation of fiscal responsibilities presents a complex challenge that calls for enhanced education, technological upgrades, and multi-sector cooperation to ensure successful integration and growth.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.