Unveiling the future of Agribanking: Bradesco

In an exclusive interview with Nadege Saad, Head of E-agro at Bradesco, we gain insights into the agricultural banking landscape in Brazil, with a focus on sustainability, digitalization and support for smallholder farmers, while highlighting the innovative projects and partnerships that are shaping the sector's future.


Could you briefly provide information about the agricultural banking landscape in your region, highlighting any unique challenges the sector needs to deal with?

Agribusiness is one of the main pillars of our economy and we believe that Brazil will increasingly be a protagonist in the role of feeding the world, expanding its participation in global production, whether of grains or animal protein. The sector is very relevant for Bradesco, so much so that we have invested in the development of new technologies such as the E-agro platform, new products aimed at the segment, and in expanding and training our teams to provide more agile service to rural producers. Furthermore, Bradesco surpassed BRL 100 billion in credit released to the Brazilian agribusiness chain this year, acting as a digital and financial partner for rural producers.

It is worth highlighting that in recent years, despite the achievements in advances in the supply of credit and competition in this modality, not all instruments created benefited all producers, especially small and medium-sized ones. A survey by the Brazilian Agriculture and Livestock Confederation and the National Rural Learning Service, in 2021, identified the main difficulties in accessing rural credit, which were: excessive bureaucracy, required guarantees, delay in releasing credit and lack of information. In this sense, the two entities saw it as necessary to facilitate access to credit by simplifying the process and having more disclosure, guidance and clarity in information. Another important point highlighted by the report is the need to increase the availability of ‘mandatory resources’, coming from demand deposits or rural savings, to fund rural credit. About three years ago, we had the approval of a federal law (Law 13.986) that authorizes the issuance of Rural Product Certificates (CPR), with a correction clause for exchange rate variation, which enables the issuance of Agribusiness Receivables Certificates (CRAs), Agribusiness Letters of Credit (LCAs) and Agribusiness Credit Rights Certificates (CDCAs), promoting adjustments that facilitate the issuance of these securities. In this sense, the expectation is that they will intensify their contribution to rural credit funding.

Could you share examples of successful innovative projects or initiatives implemented by your bank? Feel free to highlight those leveraging technological advancements such as digitalization, AI and data analytics in agricultural banking. Were these developed internally or through external partnerships/JVs?

One of Bradesco's most successful projects this year was the creation of the E-agro platform, which functions as a complete business ecosystem for the different segments of Brazilian agribusiness. Through it, the entire agribusiness chain has available credit solutions for agricultural production, livestock, personal loans and insurance types, in addition to offering products such as machinery and equipment, agricultural management and sustainability tools. The project to create the E-agro platform involved a team of around 200 professionals from different areas. Designed at inovabra, Bradesco’s co-innovation environment in São Paulo, the platform was enriched with ideas and resources to improve the user experience.

During the project, IBM Consulting was the bank's main partner, providing the platform's technological foundations. The partnership included the implementation of advanced artificial intelligence systems, fed by data from around 400,000 customers who are part of the portfolio of two million rural producers with accounts at Bradesco. Based on the analysis of this data, an initial group of clients received pre-approved credit limits, totaling BRL 54 billion, more than half of Bradesco's portfolio allocated to agribusiness, which is BRL 100 billion. In 2023, E-agro will also incorporate a robust artificial intelligence system to serve customers through chat, offer personalized insights and provide information relevant to agricultural production. Furthermore, AI generates product offers based on geolocation, culture, season and cultivation phase, anticipating the needs of rural producers.

What are Bradesco's key priorities in the agricultural sector for the next 2 to 3 years, particularly in terms of sustainable agriculture, digitalization and addressing the challenges faced by smallholder farmers?

We, at Bradesco, are committed to supporting sustainable agricultural practices, aiming to reduce environmental impact and promote social responsibility. This includes financing projects that adopt natural resource conservation practices, reduction of carbon emissions, and sustainability certifications. The digitalization of the agricultural sector is a priority and, therefore, we will continue to invest in technological solutions that simplify agricultural operations, promote efficiency and provide tools for more effective farm management. These benefit both large and small farmers by making operations more efficient and affordable. Recognizing the challenges faced by small farmers, the bank will seek to create affordable and personalized financial solutions to meet their specific needs. This may include microcredit programs, financial training, and support for purchasing inputs and equipment. These actions reflect the bank's commitment to the modernization of Brazilian agribusiness and the promotion of responsible and inclusive practices.