Diversity of financial products brings benefits, but requires caution

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Product diversity is one of the most striking features of the Brazilian Financial System. In recent years, the development of fintechs has expanded access to these services for part of the population. This combination of product diversification and increased access brings benefits to various segments of the economy, but requires caution and financial education.

Financial education is an important area that raises people's awareness about choices. Several institutions are committed to promoting it, such as the Central Bank , through its Financial Education Program .

ABAC also does its part in this collective effort, offering free content on the topic, supporting events and discussions on the subject, and through the Saber Financeiro portal . On the website, you can find a booklet, spreadsheet, texts and a quiz to test your knowledge.

Suitable solutions for each profile
With the range of opportunities available in the financial market, attention and afghanistan whatsapp list caution are needed when deciding on the most appropriate solution for each investor or consumer profile. “By stating that a certain product is the best among all, we are led to a hypothetical situation in which the entire investing population would direct their resources towards it,” points out Paulo Roberto Rossi, executive president of ABAC.

“Aware of this paradox, we could come to the false conclusion that it would be an ideal solution, but extremely harmful to the economy as a whole,” emphasizes Rossi.

Currently, there is a range of investment options and credit products on the financial market. These include investments in savings accounts, funds, CDBs, Treasury Bills and even capital markets. “It is also worth including other types such as loans, financing, and the option of a consortium,” says Rossi.

In addition to the characteristics of each category for investors and borrowers, the products feed sectors that are fundamental to the country's economic development. The consortium, for example, in addition to being a low-cost form of self-financing, aimed at the acquisition of goods and contracting of services, stimulates the various links in the production chain.

“By functioning as a tool for production planning, the consortium has proven to be a true regulator of demand by not exerting pressure on the prices of goods. As of June 2022, the assets managed by the Consortium System totaled over R$400 billion,” adds Luiz Antonio Barbagallo, economist at ABAC.

Because of some similarities, it is worth mentioning the traditional Savings Account. “Much criticized for its low yield, it registered a balance of R$968.8 billion reais in February of this year. In other words, millions of people continue to see positive factors in this investment such as security, simplicity and lack of taxation”, says Barbagallo.

Other common preferences
In the financial market, other investors prefer investments that offer higher returns, such as fixed income, fund results and CDBs, which, in addition to returns, are funding, raised for granting personal and business loans and financing, which also contribute to the progress of the economy.

At the same time, there are those who operate in the capital market, a securities distribution system that provides liquidity to securities issued by companies and enables the capitalization process, present on the stock exchanges.

On the other hand, there is another type of investor whose focus is on retirement. However, without the knowledge and patience to invest their resources on their own, they join private pension plans.

“Despite the criticism and even knowing the costs of these products, people choose them for their practicality. Meanwhile, there are others who prefer to purchase properties through the Consortium System, projecting future income from rent,” he highlights.

“Given the variety of options, each investor chooses what is most suitable for them, based on their culture and knowledge profile, trust and security. Therefore, there is no right or wrong, better or worse. Everything will depend on the need, time frame and moment of each individual, investor or consumer”, concludes Paulo Roberto Rossi.