The customer will have more choices in banks – 12/14/2021

On the eve of launching its fourth and final phase, Open Banking has collected more than 1 million customer permits to share their bank data, according to the Central Bank (BC). The UK was one of the first countries to “open up the financial system” in the world, and it took two years to hit that mark – and 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 more than 700 participating organizations and 51 million contacts, which are “calls” between participating organizations 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. It is open financing (open financing, in free translation).

Initially, there will be only sharing of products offered by financial institutions, including prices 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 they wish.

This will allow, for example, Bank X to see that the bonus rate charged by Bank Y to a particular client is too high or does not provide an adequate return for the profile, and offer him a more advantageous plan. “The Brazilian open banking model has the largest scale in the world, including from the very beginning of the implementation of credit-related data,” says Otavio Damaso, director of regulation in British Columbia.

Information from the newspaper State of Sao Paulo.