Technology

Brazil postpones first phase of open banking to February 2021

Open banking will give customers the power over their registration and transaction data to foster competition and access to cheaper and better services

Brazil Central Bank HQ in Brasília
Photo: REUTERS/Adriano Machado
Ler em português
  • Until then, the first stage of the process was to be completed by November 30 of this year, which was postponed until February 1, 2021;
  • The deadline for the last stage of open banking – that is, the entry into force of data sharing on products and services and transaction data – was October 25, 2021, but it was changed to December 15, next year.

Brazil‘s Central Bank and National Monetary Council (CMN) decided to change the timetable for implementing open banking in the country, postponing the beginning of the process, divided into four phases, until February 2021.

Open banking will give customers the power over their data to foster competition and access to cheaper and better services.

READ ALSO: In the first full operation week, Brazil’s PIX recorded 12.2 million transactions

Until then, the first stage of the process was to be completed by November 30 of this year, which was postponed until February 1, 2021.

The deadline for the last stage of open banking – that is, the entry into force of data sharing on products and services and transaction data – was October 25, 2021, but it was changed to December 15, next year.

Earlier this week, the Central Bank’s Roberto Campos Neto said that the first phase of the project “had in some cases an exhaustion of the technological process in some banks.”

READ ALSO: Banco do Brasil to enable payments with PIX through WhatsApp

“We are working to see how it resolves, but regardless of what happens in the first phase or the second, we do not change the schedule for open banking. It will be ready on the same day,” said Campos Neto, in an interview broadcast the day before.

In a statement, the Central Bank said that with the necessary efforts to fight the Covid-19 pandemic, the government understood that the work processes in the institutions participating in open banking were affected.

“It was also taken into account the need to adapt the institutions’ systems due to other regulatory actions, such as PIX and the registration of card receivables,” added the monetary authority.

“Even with the schedule adjustment, the completion of the open banking implementation process, divided into four phases, will occur in 2021.”

Translated by LABS

Get the best insights about Latin America market in your inbox