In Brazil, applying for a credit card is a whole lot of hassle. But mobile-first service Nubank is harnessing the 90 million-strong smartphone circulation to replace all that poor service and paperwork with a streamlined, app-based offering. Is this the future of Brazilian banking?

Brazil’s growing middle class has been on a decade-long spending spree with borrowed money. Between 2004 and 2014, consumer-held credit rose by 658%. But with interest rates on credit cards spiralling, shoppers are turning to a traditional source of extra cash – pawn shops.

Brazil’s consumers are holding on to their cash. The economy is struggling as it slides towards recession, and its shoppers have now thrown in the towel. Retail sales for April were expected to be flat, but not negative – contributing to an annual drop that's twice as large as predicted.

New shopping malls and a young population with sophisticated shopping tastes are helping make Brazil one of the world's most profitable luxury markets. But the recent economic downturn means optimism is ebbing. Does a gloomy economic outlook spell the end of Brazil’s luxury bonanza?