The Brazilian Central Bank has today started phase 2 of open banking. Now, customers will be able to request the sharing of their financial data on traditional banking services (accounts, credit and payments) among banking institutions participating in open banking. Sharing is only done with the prior authorization of the customers and can be canceled at any time.
According to the Central Bank, as of phase 2 customers will be able to receive offers of products and services more suitable to their profile, at more accessible costs and more securely. There may also be more customized solutions for management and advice on finances. From the institutions’ perspective, they may actually start to develop new financial products and services.
It is important to clarify that open banking is a financial ecosystem and not a product in itself, that is, it is an ecosystem from which participating institutions will be able to develop products, improve their offerings and optimize processes. But for this to happen, both customers need to share their data and institutions need to think of new products and services to make the most of open banking.
The implementation of the second phase will be staggered in four stages and there will be limits on the number of sharing authorizations. For example, in the first stage, which runs until September 12, the limit of customers who can consent to this sharing is 0.1% of the customer base (Individual and Corporate customers) of the data source. The percentage will increase until it reaches 10% in the fourth stage. After this, sharing will be allowed for the entire customer base.
The range of information that can be shared also increases with each stage.
The open banking schedule foresees the start of the third phase for August 30. In this phase, consumers will have access to services such as payments and credit proposals beyond the financial institutions’ channels. The consumer gains more autonomy to access financial services through other channels. But not all services will be available, the offer will be staggered due to a resolution published by the Central Bank that altered phases 3 and 4.
Brazil’s open banking phases
- February, 2021 – Phase 1
The financial institutions whose adherence is compulsory and those that opted to participate share standard information on banking products and services. At this point no customer data is shared.
- August, 2021 – Phase 2
From now on, the client will have more active participation and will be able to request the sharing of their data and financial information between institutions. The biggest benefit for the consumer will be the customization of offers and products. The financial ecosystem will be shaken by innovation and competitiveness.
The second phase was scheduled to start on July 15, but was postponed to August 13 and staggered in stages ending in October.
- August, 2021 – Phase 3
Consumers will have access to services such as payments and credit proposals beyond the financial institutions’ channels. The consumer will gain more autonomy to access financial services through other channels. But not all services will be available, the offer will be staggered due to a resolution by the Central Bank that has changed phases 3 and 4.
This year only transfers via PIX (the Brazilian instant payment system) will be available. Payments via other methods ( slips, debits, for example) will only be available from 2022 onwards.
- December, 2021 – Phase 4
The scope of open banking is widened: information from foreign exchange, investments, insurance, pension, and salary accounts will be shared, if authorized. The last phase of open banking begins on December 15 and ends on May 31, 2022.
(Updated according to changes announced by the Central Bank)