This week, open banking entered another stage of the implementation schedule established by the Central Bank. Since Monday (13) the sharing of information related to transaction account data, such as statements and limits, began.
Open banking is a platform supervised by the BC in which Brazilians can share data between financial institutions. The second phase began on August 13 and until then involved only the exchange of customer registration data between financial institutions, such as address, telephone number and income. (See details of each phase below).
Understand what Open Banking is
Since the beginning of August, customers can already request the sharing of bank details with other financial institutions, but the changes will still take a few months to be felt by consumers. Until then, the share authorization limit was limited to just 0.1% of each institution’s customer base.
“There is still a limitation on the amount of consents given by users for this exchange of up to 0.5% of the customer base, which will progressively increase, and initially, it will be done between 8 am and 6 pm on working days”, informs the Brazilian Federation of Banks (Febraban).
As of September 27, information on credit transactions and credit cards can be exchanged. And the limit of customers who can authorize data sharing goes up to 1% of the customer base.
As of October 11th, the financial data sharing platform will start operating 24 hours a day, 7 days a week, but still with limited audience. See the schedule below:
2nd phase of open banking implementation was staggered to ensure security and stability to the process and allow adjustments as needed — Photo: Economia/G1
According to Febraban, the forecast is that, from October 25th, the sharing of data authorized in phase 2 will already be working for the entire public, 24 hours a day, 7 days a week.
“Banks are consistently working on consolidating the environment and evolving the infrastructure, in yet another important step to bring innovation to their customers,” he adds.
Open Banking (or Open Financial System) is a system for sharing financial data in a standardized way. On a single integrated platform (APIs), different financial institutions have access to customer data to offer personalized products and services that are more advantageous for each case.
According to the Central Bank, with open banking, financial institutions “will be able to offer products and services to their competitors’ customers, with benefits for the consumer, who will be able to obtain lower rates and more advantageous conditions”.
The expectation is that institutions will start using open banking as a tool for credit analysis, for example. From open banking, applications may also be launched that gather account data at different institutions and that offer financial planning services or credit and investment simulations.
If I authorize, can I cancel later?
Authorities claim that data sharing will take place securely and with the necessary controls for handling data that involve bank secrecy. In addition to the specific regulation of open banking, participating institutions will also need to follow the rules of the General Data Protection Law (LGPD).
It is important to know that sharing occurs only if the person authorizes it and that it is the consumer who defines what data he authorizes and for how long. There is no downloadable application, no specific site for registration, nor is it necessary to sign documents at bank branches.
To participate in the new system, consumers will have to choose to share the information they have with other financial institutions when hiring a credit or requesting a financial service at another bank, for example. In addition, the user is also entitled to cancel this consent at any time and at any financial institution.
According to the rules defined by the Central Bank, the consumer will have to be informed about the authorized financial information and to which institutions the data was transferred. In addition, the authorization request must make clear what the purpose is, that is, the supply of which product or service it refers to.
The deadline for sharing must also be defined by the client, which may be a maximum of 12 months.
The structure designed by the Central Bank for open banking in Brazil foresees the implementation of four phases by the end of December.
Open Banking in Brazil — Photo: Arte/G1
The third phase is scheduled to start on October 29, when the integration of services will take place and new solutions may be launched, such as electronic transfers through Open Banking.
At this stage, it will be possible, for example, for the customer to pay bills and make bank transfers outside of internet banking or the bank’s app.
“A business model may appear in e-commerce: for example, when shopping on an e-commerce site, it will be possible to consent to a payment or transfer within the sales site itself, being redirected to the bank’s application or website only for client security authentication”, explains Febraban.
Transfers via PIX will be the first to allow electronic transfers through open banking. Then it will be the turn of transfers via TED and electronic transfers between accounts of the same institution, followed by bank slips and account debit service.
In the fourth and final phase, scheduled to start on December 15th, financial institutions will share data on investments, services related to foreign exchange, accreditation, insurance and pensions.
Accredited institutions must make public information on financial market products such as CDB, RDB, LCI, LCA, investment fund shares, government bonds; between others.