Brazil initiates first phase of Open Banking

The first phase of Open Banking in Brazil was postponed from November 30th and was initiated in Brazil on February 1st, 2021. The Central Bank of Brazil has informed that the delay was due to the Covid-19 pandemic, which increased electronic transactions, along with other factors such as emergency aid payments, the implementation of Pix, and the receivable registration rule.

 

Read also: Open Banking in Brazil: what will change?

 

Central Bank of Brazil’s Open Banking schedule

The implementation will occur in four phases. With the postponement of the first phase, some of the following phases have also suffered changes.

The second phase has been pushed out from May 31st to July 15th, 2021; the third part has been postponed until August 30th. And the final phase has been rescheduled from October 25th to December 15th, 2021.

More details on the implementation phases can be found in this article.

 

The impact of Open Banking

Open Banking is defined by the Central Bank of Brazil as “the sharing of data, products, and services by financial institutions and other licensed institutions, at the customers’ discretion as far as their own data is concerned, through the opening and integration of platforms and infrastructures of information systems, in a safe, agile and convenient manner.”

This means that, with the consumer’s authorization, financial institutions will be able to process data from other organizations, widening the customer’s access to financial products that fit their needs.

Let’s suppose a customer is looking for the best credit offer in the market. If the client agrees to share his information, financial institutions can offer customized propositions, according to his profile and habits. This stimulates competition among financial players, reducing costs for the customer.

According to the Central Bank of Brazil, the initiative empowers the customer, increases fintech companies’ participation in the Brazilian market, stimulates innovation, and promotes financial inclusion. Learn more about Open Banking on the Central Bank of Brazil’s official website.

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