Abstract

Brazilian financial system has banking concentration and high costs, however, the fintechs provided accessible financial products and services to the population. This paper aims to evaluate the impact of the fintechs on the financial inclusion of the Brazilian population. We collected data from governmental and non-governmental sources about fintechs and other financial institutions in Brazil between 2014-2017 to compose the financial inclusion index proposed by the Central Bank. We applied a regression tree model to identify variables that could explain the index. The descriptive analysis pointed out that some fintech variables have a moderate correlation with the index. Also, most of the variables related to the traditional financial system presented a high correlation with the index, which can indicate that today the traditional model predominates as the first option to enter the financial system to a great number of Brazilians. The decision tree selected seven variables with high explanatory potential, two of them were related to fintechs. There was a clear division in the decision tree, the left side represented the North, Northeast, Central-West, and the right represented the South and Southeast regions. Fintechs variables selected were on the right of the tree, indicating their prevalence in South and Southeast.

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