Economy

Brazil's Central Bank changes rules for open banking's second phase

The main measure established in the resolution published on Friday is the institution of the customer experience manual

Brazil's Central Bank. Photo: Agência Brasil
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  • The new customer experience manual establishes requirements for customer data sharing processes, which covers the stages of consent, authentication, and confirmation;
  • Open banking’s phase 1 began to be implemented on February 1, with the sharing of data from financial institutions to the public.

Brazil‘s Central Bank published a resolution that modifies rules for the implementation of the open financial system, the so-called open banking. Brazilian Central Bank’s goal is to reinforce the right to data protection for customers.

The measure complements the current regulation that establishes the technical requirements and operational procedures of phase 2 of the system, which will allow the sharing of registration data and transactions of bank customers.

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Open banking is the standardization of the process of sharing data and financial services by institutions authorized to operate by Brazilian Central Bank, through the opening and integration of technology platforms and infrastructures. Through the system, customers will have power over the information collected by banks and will be able to authorize sharing to other institutions.

According to the Brazilian Central Bank, open banking will increase competition among banks and better offer products and services to customers.

Phase 1 began to be implemented on February 1, with the sharing of data from financial institutions to the public, such as the characteristics and prices of retail banking products and services related to accounts, credit cards, and credit operations for individuals and legal entities. The target was the other financial or payment institutions, developers, potential fintechs, and academics, aiming at the creation of service platforms and new business models. The data are available on the websites of each bank.

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Phase 2

Open banking’s phase 2, to be implemented by the institutions until July 15, will cover the sharing of registration and transactional data related to credit operations, deposit account, and credit card, with the prior consent of customers. With this, it will also be possible to deliver customized services to the different profiles, taking into account the interests, objectives, and needs of each audience.

The sharing must be expressly authorized by the client and has a term of one year, but can be ended at any time through the channels of each financial institution. Only institutions regulated, authorized, and supervised by the Brazilian Central Bank can participate in open banking, being subject to administrative sanctions for any breach of bank secrecy.

Phase 3 of the system is scheduled for August 30, with the start of payment services and the submission of credit proposals. And the fourth phase, for December 15, with the expansion of financial products and services integrated into the open banking infrastructure, foreign exchange operations, investments, insurance, open supplementary pension, among others.

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Open banking’s new resolution

The main measure established in the resolution published on Friday is the institution of the customer experience manual. The new manual joins four others already foreseen in the regulation, which are: Scope of Data and Services; APIs (application programs); Services Provided by the Governance Structure; and Security, which are also being updated and consolidated.

According to the Brazilian Central Bank, this new customer experience manual establishes requirements for customer data sharing processes, which covers the stages of consent, authentication, and confirmation. “It aims to harmonize the procedures and information made available by participating institutions to customers, to ensure an agile, safe, convenient, and transparent experience,” explained Brazil‘s Central Bank, in a statement.

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Also, new services are being required by the open banking support infrastructure, such as the creation of an API testing environment. In this case, the objective is to ensure conditions for institutions to test their APIs at the development stage, including access to examples to assist its implementation.

(With information from Agência Brasil)

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