The 4th phase of Open Baking in Brazil reaches its last stage. As of this Tuesday (31), it will be possible to share data on exchange operations, investments, insurance and pensions between banks, financial institutions and cooperatives. The sharing of information will only be carried out if the customer authorizes it.
The operationalization of user transactional data is part of the second part of phase 4 of Open Banking, whose first stage of this phase began in December 2021. On the occasion, the participating institutions presented the technology that certifies the quality and adherence to the Bank’s specifications Central (BC) at service.
Now, the arrival of the final part of the last phase marks the transition from the ecosystem to the so-called “Open Finance” , which expands data sharing beyond banking spheres. According to BC, “the project as a whole becomes Open Finance”.
Open Banking in Brazil started on the first day of February 2021, with a schedule designed to complete all 4 phases by the end of that year. The first three steps focused on sharing users’ bank data between financial institutions, each with its own operational characteristics.
The last phase will expand sharing for all personal finances of a client, allowing information on investments, insurance, private pension, among others, to reach companies authorized by the BC.
“There are more options for data sharing, at the end user’s discretion. This is a new step towards empowering the population as the real owner of the data, which will be able to obtain better offers of financial services and benefit from more competition between institutions”, said Ricardo Taveira, CEO and founder of Quanto, an Open platform Banking.
“But it is also necessary to remember that we are only at the beginning of the implementation, and the market needs time to transform it into effective changes for the consumer”, he added.
What will change?
The Central Bank confirmed to the CNN Brasil Business that the calendar published by the monetary entity will follow as planned, depending only on the development of the market in relation to the norms of the technology.
In practice, as of this Tuesday, customers depend on competition between financial institutions, which must begin to present personalized offers based on shared user data.
“Sharing this information will allow the institutions that are receiving this data to analyze and understand who the individual is, what their consumption habit profile is, their needs and, thus, create products and services aimed at serving the customer in the best way, that fit his financial reality”, highlighted Fernando Tassin, payments and Open Finance manager at TecBan.
Tassin reinforces that this new phase will bring more competitiveness between companies and more information to customers to hire a financial service.
“The end customer will be increasingly focused on their empowerment, in addition to obtaining access to information in a simple and transparent way, being able to choose the financial institution that provides the best service, which is not necessarily the cheapest service”, he explained. .
Therefore, companies can offer products that range from more credit card limits, more adequate financing installments, investments or insurance, and even more attractive rate benefit packages, with exemption on certain services.
“Before, people would go door to door asking for funding. Now, that’s going to be reversed. With the consumer’s history in hand, the financial institutions that will look for the individual and offer the best offers available”, pointed out Rodrigoh Henriques, leader of financial innovations at Fenasbac (National Federation of Central Bank Servers Associations).
Next steps
In 2022, the Central Bank established a calendar in which it will be possible to feel more the effects of the implementation of Open Banking in the country.
“We hope that in this new year there will be an even greater adhesion of financial institutions in Open Banking, mainly referring to the new banks, which are understanding the ways to incorporate data internally and offer better products and services”, said Gustavo Bresler, strategy manager at How much.
From this year it will also be possible to carry out payment options with Open Banking that go beyond Pix.
Regarding the payment initiator (ITP), which is the tool used for a service company, such as delivery applications, for example, to start offering customers the option of instant payment within the platform itself.
on February 15, BC announced the possibility of direct transfer for payments with TED and transfer between accounts in the same institution. On June 30, the mechanism starts to work for payment of slips, while on September 30 it will start for payments with debits.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
