The Central Bank’s Regulation Director, Otavio Damaso, said this Tuesday (5th) that open finance, an evolutionary project of open banking, is still not working “at full steam” and that some obstacles in communication between institutions have been identified. financial.
“He [open banking] is it running at full throttle? Not yet. We still have some challenges that are being addressed step by step, the main point is the issue of consistency of information that is being exchanged between institutions”, he said.
“We still have some problems with inconsistencies, which the supervisory area is dealing with on a case-by-case basis. But this information is already circulating, and banks are already taking advantage of this information to better understand their client’s behavior and demands” , he added.
At the Open Banking 2022 event, promoted by Ibrac (Brazilian Institute of Competition, Consumption and International Trade Studies), Damaso also highlighted that APIs (communication interfaces) need to be “100% in order” for information to flow with quality.
Communication is the basis of open finance, which provides for the integration of non-banking services into the model, expanding the sharing of personal, banking and financial data between institutions –with prior authorization from the citizen– for various sectors, including insurance companies, investment brokers, exchange and pension.
The BC director acknowledged that the deadline set for the implementation of the system was “tight” and “audacious”, given the scope of the Brazilian project, which brought additional challenges for the monetary authority.
“The scope of open finance in the Brazilian case was much greater than in other countries, and the implementation period was much shorter. The deadline was perhaps too tight for the size of the project that we would like to implement in Brazil, this is a point that remains as our lesson”, he said.
According to Damaso, open finance currently has 5 million active consents. This means that 5 million customers have already authorized their information to travel between financial institutions.
The model also adds up to 700 million API calls per month and has 700 to 800 institutions participating in the ecosystem, some on a voluntary basis, in addition to five authorized and functioning payment initiators.
In the future, the monetary authority plans a greater integration of the open financial system with Pix, with the receivables register and with the digital currency, which is still under development. “This integration will bring more efficiency to all these products,” he said.
For the BC director, open finance represents a “revolution” in the financial system, so that some positive effects will only be felt “in five or ten years.”
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
