SAO PAULO – Open Banking is still an incipient project in Brazil, although it has been developed and analyzed by the Central Bank regulator and its direct and indirect participants for some years.
Currently, the new financial ecosystem, which will allow consumers to choose to share their personal data from one bank to another, is in stage one of the second stage – which has four stages in total. For now, a small slice of consumers, more precisely just 0.1% of the customer base of participating institutions, have access to sharing.
As Open Banking is gradually being implemented in Brazil, the expectation is that more people will understand the possibilities and adopt sharing at some level, as João de Pinho Mello, director of BC, has already pointed out recently.
And what nobody hides here is that the Open Banking project is ambitious: the idea is to cover the financial system, which is already underway, and further on the idea to evolve into the insurance sector, with Open Insurance, and also the investments, with Open Investments. Remember that the InfoMoney made a special report on the subject.
And abroad, the steps being taken here are welcomed.
“The hardest part of Open Banking is getting started. It’s about adjusting the regulation, centralizing the rules and putting the project to work. This is being done in Brazil and we had difficulties in the UK. Brazil has done its homework, has ambitious deadlines and has everything to become a global leader and become a model for the world given its potential”, said Imran Gulamhuseinwala, leader of the Open Banking implementation entity in the United Kingdom, appointed by the Competition and Markets Authority, British version of Cade.
He participated in an event promoted by the consultancy Accenture and by the Mastercard card brand about Open Banking this Wednesday (1st).
According to him, the implementation of Open Banking in an emerging country and extensive in terms of territory such as Brazil can be an incentive for other countries around the world to start adopting the ecosystem.
Watch the video of the Open Banking Week promoted by InfoMoney which brought a little of the comparison between Open Banking in Brazil and in the United Kingdom:
How will it appear in the consumer’s life?
Edlayne Burr, director of financial services at Accenture, also participated in a panel at the event that highlighted four business models that the consultancy hopes to see in Brazil as a reflection of the arrival of Open Banking, based on a study that compares models of the ecosystem in Hong Kong, Singapore and other countries.
In practice, it anticipates a bit of what the customer can expect to find with more mature Open Banking in the near future.
See the highlights:
- 1. Data aggregation
According to her, the personal data management model should appear soon for Brazilian consumers. The idea is for consumers to have access on a single screen to all the financial services providers they use, facilitating data visualization and management.
This type of service, pre-Open Banking, was already provided by companies such as Guiabolso, now from Pic Pay, or Fliper, from the XP Inc. group, which unite different providers in a single app – but always needing to make bilateral agreements to that providers appear in their respective dashboards.
With Open Banking, all these partnerships and connections between service providers and providers will be streamlined allowing more providers to appear in apps like the ones mentioned.
In practice, the idea is that you continue to be a customer of the same bank, but access the information and manage your services through a channel other than the app or internet banking of this institution (learn more here).
The concept of the marketplace is the idea of a financial mall, as we have already seen working with investment brokers, such as XP, for example.
But the idea is that the customer, at the limit, can access the website of bank A and have access to services from fintech B and broker C because these players have entered into partnerships to offer their products in the same place.
This modality has been gaining a lot of space abroad, according to Edlayne, and has become more popular among customers for the convenience of finding everything in the same place and being able to consume directly from there, in addition to attracting new sources of revenue for the players involved, as it has exposure in showcases not considered before.
Another path that Edlayne believes that Open Banking in Brazil should develop more quickly is in the credit segment. With more transparency, the system as a whole will have more accurate credit scores, enabling the customization of products and services that are tailored to the client’s history.
O InfoMoney explained in a recent article the impacts of Open Banking on the lives of defaulters, for example, and also showed the main expected changes for the sector.
Thus, according to her, the system as a whole will be more competitive, generating good opportunities for customers.
- 4. Integration with Pix for payments
She also stated that the large-scale adoption of Pix in Brazil could help accelerate the adoption of Open Banking through payment initiators, especially in e-commerce shopping.
This integration between Pix and Open Banking will take place in the third phase of Open Banking, which was scheduled to start on the 30th, but has been postponed to take effect on October 29th. In practice, consumers will be able to initiate and make payments at online stores directly by making a Pix via WhatsApp, for example (learn how it will work here).