Technological advancements in the brazilian banking sector

a theoretical perspective based on schumpeterian competition

Abstract

Microelectronic innovations and artificial intelligence intertwine with competitive strategies in the banking sector. This interplay became evident following the introduction of microelectronics in the 1950s through hardware, then through software in the 1980s, and further evolved in the second decade of the 21st century with the integration of physical structures and the processing of vast amounts of data. These advancements facilitated learning from experiences connected to hardware, resulting in performance increasingly akin to human capabilities in banking activities. This evolution led to increased profits and, consequently, larger and more profitable customer portfolios. The ongoing technological evolution is crucial not only for daily operational effectiveness but also as a key competitive differentiator. According to Schumpeterian competition theory, which underscores that competitors are primarily driven by innovation—not only in technical parameters but also in methods, procedures, and relationships with both external and internal audiences, innovation aims to deliver more efficient results and enhance information processing speed. The ultimate goal is to achieve a temporary leading position in the competitive banking landscape. In this context, the study aims to explore the evolution of technological trajectories within the banking sector. Bibliographic and documentary research methods were employed for this investigation. The main findings suggest that innovation is an inherent aspect of the capitalist system—an endogenous factor in the competitive dynamics of the banking sector, which depends on technology to enhance performance and profitability. Therefore, understanding the technological trajectory of the banking sector is essential for developing future market strategies, comprehending the evolving customer profile, and creating new products and service delivery methods.