Before launching its fourth and final phase, Open Banking collected more than 1 million authorizations from customers to share their bank data, according to the Central Bank (BC). One of the first to “open the financial system” in the world, the UK took two years to reach this mark – Brazil did it in four months.
The BC initiative, which aims to increase the competitiveness of the financial system, began in February. Since then, there are already more than 700 participating institutions and 51 million connections, which are the “calls” between the participating institutions to exchange information.
At this last stage, which begins tomorrow, it will be possible to exchange information between financial institutions about investments, insurance, private pensions and exchange. Open Finance (Open Finance, Free Translation).
Initially, there will be only sharing of products offered by financial institutions, including fees and terms, which will facilitate comparison of services by the customer. But on May 31, 2022, the user will also be able to share investment, insurance and private pension data and exchange data, if that is their wish.
This would allow, for example, Bank X to see that the bonus rate charged by Bank Y to a particular client is too high or the return is not suitable for the profile, and offer him a more advantageous plan. “The Brazilian open banking model includes the largest scale in the world, including from the beginning the implementation of credit-related data,” says Otvio Damaso, director of regulation in British Columbia.
Information from the newspaper State of Sao Paulo.
Charlotte Whitmore is a contributor at Mediarunsearch.co.uk, covering a broad range of topics including news, politics, business, technology, sport, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting and practical information that helps readers stay informed about current events and emerging developments. Her work highlights stories that matter to everyday audiences, with an emphasis on accuracy, relevance, and accessible journalism that keeps readers connected to the issues shaping the UK and beyond.