According to data from the Union of Cemeteries and Private Crematoria in Brazil (Sincep), the funerary market turnover in Brazil already exceeds $1.5 billion (R$7 billion) per year and has a strong growth trend. With the encouraging numbers, the segment started to gain new services and products that contribute directly to its modernization. That is only possible due to the process of flexibilization of laws and market opportunities not yet explored by traditional funeral companies.
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Fintech as a solution for funeral assistance plans
Until 2016, there were no specific regulations for funeral assistance plans in Brazil. Previously, the Consumer Protection Code acted with a general regulation for the provision of funeral market services, but there was no specific regulation and the segment ended up not having a clear and specific legal definition. It was only with Federal Law No. 13,261 of March 2016 that these rules and inspections for the sale of funeral assistance plans were regulated.
Four years have passed, and thanks to the law intended for the funeral market, it is now possible to effectively define the category. It was previously divided only into bereavement plans, family assistance plans, and several others, without a specific branch. All of this has led to a new competitive factor entering the dispute, in order to attract clients’ attention: innovation. Technological tools have increasingly contributed to the improvement of the segment and its services.
Automative functions to assist in financial management
Thinking about reducing, for example, the time spent on administrative functions, a way to improve customer service and streamline processes, automating the internal demands of companies, the fintech company Juno, which has gained national prominence as a payment intermediary, has just launched solutions focused on the funeral market. “The fintech company from Curitibana wants to facilitate the management of collections from companies. In addition, the client does not need to have a portfolio with the bank to start issuing collections by deposit slip or credit card. He can do all this via Juno,” commented José Antunes, Commercial Supervisor at Juno.
Financial management is usually one of the biggest pains for entrepreneurs in any segment. There are still many companies that continue to do all the control by spreadsheets that are not integrated into an automated system. Using Juno’s platform, companies in the funeral market will have full control over all customers who have paid and will be able to view future charges. Companies can also use their online balance to pay bills without any additional fees. “If you use a management system, Juno’s financial module can be integrated into it and facilitate all your centralized financial management in one place,” Antunes detailed.
The main bet of the startup Juno
One of Juno’s main bets is to automate the collection of funeral plans, mainly because these are services contracted for several months or even years. “This type of collection ends up losing control when it is dependent on manual operations. Those who do it via traditional banks know that you have to spend a lot of time with bank approval and shipping and return files,” José explained.
In addition, many people end up becoming defaulters because the company only offers a means of payment that may be difficult for them to access. With Juno, there are the options of collection via a bill, payment card or credit card. The fintech startup also allows the programming of discounts for those who pay in advance and fines for overdue payments.
Automated reminders in the program
“One way to encourage your client to pay on time is to offer a break, because, in addition to your company having the money available in cash as soon as possible, it can greatly improve your financial management. By scheduling collections on the Juno platform, you can offer this discount and even add interest and fines for late payments,” he commented.
To top it off, Juno automates due date reminders. “Forgetfulness is usually the most common cause of default, especially when dealing with the funeral market, where people who use the service are always worried, but that’s easy to solve. The system triggers automatic reminders of the charges that are generated on the platform, so that people don’t forget the payment,” added José.
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First published in XVCuritiba, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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