Economy

Brazil's cenbank postpones phase 2 of Open Banking to August

The postponement meets a request from the Open Banking governance structure, since the institutions are finishing the tests to obtain the approval and registration of their APIs

Open Banking Brazil
Illustration: Felipe Mayerle
Ler em português

The Central Bank of Brazil postponed the start of the launch of Phase 2 of open banking to August 13, as informed by the institution on Wednesday (14). Initially, the second phase would be launched tomorrow, July 15.

In Phase 2, institutions that adhere to open banking will share their customers’ financial data, with prior authorization. According to the Central Bank, the postponement meets a request from the Open Banking governance structure, since the institutions are finishing the tests to obtain the approval and registration of their APIs, through which it will be possible to share data.

READ ALSO: From open banking to instant payment: what’s going on in Latin America

Brazilian open banking is part of the “Agenda #BC”, a Central Bank agenda focused on tech evolution to modernize the financial system and the laws that govern it, and also to improve competitiveness and transparency.

Open banking will allow customers to share their financial data among institutions authorized by the Central Bank. With this, they will have more autonomy to choose financial services and products and will be able to manage their financial lives on more than one platform or app.

READ ALSO: Open promises: financial revolution in Latin America

On the market side, open banking has the potential to bring traditional banks, fintechs and other financial institutions that operate under some license from the Brazilian Central Bank on equal terms thanks to the adoption of a standardized technology layer that will simplify communication and data portability between institutions.

Although the regulatory agenda for open banking is a global trend, its design and implementation strategy change in each country. In Brazil, the Central Bank centralized management and the adoption of a communication standard via APIs (application programming interface) are great differentials in comparison with other countries.

Infographic: LABS Collections
Get the best insights about Latin America market in your inbox