And when the government innovates? An analysis of Brazilian banks’ efficiency after the Pix

Purpose This paper aims to understand the efficiency of Brazilian banks in services after the creation of Pix, an instant payment instrument created by the Central Bank. Design/methodology/approach The DEA methodology and Malmquist index analysis are applied in two stages. The results show an efficiency improvement, notably for smaller financial institutions, but it was impossible to verify the relationship with Pix. Findings However, the estimated regression indicated that the gains from providing services – charged and captured by financial institutions – were shared with customers in the post-Pix period, although the Central Bank’s intervention was successful. Originality/value These findings are important for the scientific literature investigating financial innovation and the policymakers in the sector.