Open banking: See how to join the system and how to cancel authorization to share financial data | open banking

Brazilian consumers can, since the second half of August, join open banking, a system of the Central Bank (BC) that allows customers to share their data between financial institutions to receive offers of products and services.

To join the system, customers need to authorize, through the digital channels of financial institutions, which information they wish to share and set the deadline for this sharing.

In this current phase of system implementation, the 2nd among four planned stages, the customers can authorize the sharing of registration data and information about transactions in their accounts, credit card and credit products contracted with financial institutions.

“The decision to share is up to the customer. He has the full and full right to use your information. He has to see a benefit in this sharing and consent”, explained the head of the regulation department of the Central Bank’s financial system, João André Pereira.

BC highlighted that the implementation of this 2nd phase “will be staggered, in order to ensure security and stability to the process and allow adjustments that are necessary.” Until October 24, there will be limits on the number of authorizations for sharing; the type of information to be shared and the time at which the sharing will be performed (see the schedule at the end of this article).

How to join open banking?

Adhesion to the system is made exclusively through digital channels (such as websites and mobile apps) of participating financial institutions (banks, cooperatives, fintechs). There is no downloadable application, no specific site for registration, nor is it necessary to sign documents at bank branches.

  • READ MORE: Open banking: understand what it is and how it works
  • Open banking will create ‘the financial system of the future’, says BC president

The option to join the system must appear on the screen of the cell phone, notebook or tablet when the client accesses the institution’s digital channels seeking to hire a financial product or service. In it, the institution asks if there is interest in sharing registration data or transaction history that the client has in another institution that is also a participant in open banking.

  • See the full list of participating institutions in open banking

Heads up: before accepting any proposal, it is necessary to be aware of the purpose and deadline for using the requested information.

According to the Central Bank, “sharing occurs only if the person authorizes it, always for specific purposes and for a specific period.” For example, if the customer is looking for a bank loan, this should be the purpose he will define for sharing the data.

The deadline for sharing must also be defined by the client, which may be a maximum of 12 months. After the established period, if you want to continue sharing your data, the customer will have to make a new authorization.

According to the Central Bank, this authorization is carried out in three stages:

  1. Consent: when the consumer, when browsing the financial institution’s website or application, gives the guarantee for their data to be shared, clicking on a specific field to accept it;
  2. Authentication: after consent, the consumer will be transferred to the interface of the institution of which he is a customer, from where the data will be taken, and log in with the username and password. It is at this stage that the data to be shared, the purpose, the expiration date of the sharing and the name of the institution that will receive the information will be presented. If it agrees, the client confirms the sharing.
  3. Confirmation: Once the authentication is completed, the customer will be redirected back to the service channel of the institution he accessed in search of products and services. In it, you will be informed that the sharing was carried out.

“This entire process is carried out in a safe environment and the permission can be canceled by the person whenever he or she wants to”, guarantees the Central Bank.

Example of open banking flow operated by Quem — Photo: Reproduction

How to cancel information sharing?

The BC states that the customer can, at any time, cancel the sharing of their information between financial institutions, regardless of the deadline he has set when joining the system.

Cancellation is also done exclusively through the internet, through the digital channels of any of the institutions involved in sharing, that is, both at the source and destination of the data.

2nd phase of open banking implementation was staggered to ensure security and stability to the process and allow adjustments as needed — Photo: Economia/G1

Benefits for consumers

The Central Bank points out that open banking, by establishing the sharing of consumer banking information between financial institutions, should “favor and benefit the client itself”.

  • See some examples of how open bankin can benefit customers

One of the benefits pointed out by the institution is the possible reduction in the prices of products and services. This is because a bank, for example, can share with another whether the customer is a good payer and whether or not he uses the overdraft.

“We will have products with lower costs and products that are more designed for customer needs, with lower prices and inclusion. We also believe that Open Banking will generate new business models over time and intensify competition”, highlighted the president of the Central Bank, Roberto Campos Neto.

See the main points about open banking and data usage:

  • Sharing is optional: the customer needs to authorize for the data transfer to take place. And, for each new share, a new ok.
  • Consent for data transfer in open banking it has to be done electronically, with clear and accessible language about the purpose, that is, for what purpose they will be used.
  • You data should only go from company A, which may be your current bank, to B, a bank where the customer wants to open an account, for example.
  • past the information usage time limit, which will be a maximum of 12 months, a new acceptance is necessary for the data to be shared again.
  • At institutions need to follow the rules of the General Data Protection Law (LGPD), but there is also a specific regulation of open banking.

READ MORE: Failure to comply with the LGPD can lead to punishments; understand

Understand what Open Banking is

Understand what Open Banking is