Open banking is expanded in the fourth phase, and is renamed open finance

Open banking is expanded in the fourth phase, and is renamed open finance

The fourth phase of open banking, or open financial system, begins this Wednesday (15) and provides for the integration of non-banking services to the model, such as pensions, insurance, foreign exchange and investments.

The inclusion of these products initiates the system’s expanded format, known as open finance.

“With phase 4, open banking starts sharing a set of information beyond traditional banking products and services, which marks the beginning of its migration to open finance,” the Central Bank said in a statement last week.

Open banking (now open finance) is a set of rules and standards established by the BC for data sharing, under the express authorization of the client, between financial institutions.

The model gives consumers the possibility to authorize or not that banks and fintechs consult their banking history and other information, which was previously private and difficult to access, even for the user.

In the fourth phase, the BC determines that information on non-banking financial services is also made available.

That way, he doesn’t need to build a new relationship when migrating from institution, he can just take his data. In addition, the system allows more advantageous products and services to be offered by banks with which it has no ties.

In practice, the new stage will only come out of the paper in March 2022. Now, banks will have to start the process of functional certification of the APIs —sets of protocols that allow a system to connect to another to consume data in a standardized way— of the services that will be shared.

After obtaining the certificates, the banks must register the information in the APIs. For insurance, supplementary pension and capitalization services, the deadline is March 4 of the next year.

Accreditation services in payment arrangements (card machines) will have until March 11 to register. Exchange operations, on the other hand, must be integrated by March 18th.

Information about investment products must be shared by March 25, 2022.

For specialists, open finance will be felt by consumers in the medium and long term, unlike Pix (instant payment system), which had immediate adhesion.

“This is the kick off of preparation for open finance, where other financial data can be shared in the open system. The BC intends with the scaling to bring efficiency to the implementation, and especially to guarantee the quality of this ecosystem that is being built by the market”, he explains the project coordinator at Tribanco, Paloma Oliveira.

“The open banking strategy in Brazil is being well planned by the market and by the BC to reach the consumer in a safe and stable way, I believe that the gains will come in the medium term, as it is a digital transformation of the market as a whole”, he points out .

Leandro Pupe Nóbrega, from the open banking platform Belvo, highlights that the new phase should open up possibilities for new business models.

“When the customer has easy access to a financial service completely adapted to the context in which he lives, adherence to open banking will be exponential and we will live in a new world of infinite possibilities”, he says.

“When we talk about data sharing, we are talking about the company’s ability to aggregate more data, and thus generate more information. Today, information is the new oil, with it companies are able to generate new transactions”, points out Nóbrega.

Insurance sector is one of the highlights

In his view, the insurance industry, for example, should be highlighted with the implementation of the fourth phase.

“The sector that gains more prominence at this stage is insurance, a movement also known as open insurance, as most Brazilians do not have access to this type of service, and when they use them, they have a very bad experience. Here once again we have the possibility of using data sharing in favor of the client”, he says.

Wagner Ferreira, president of fintech Teddy Open Banking, believes that the integration of these products should increase the competitiveness between fintechs and banks.

“Fintechs that work with the foreign exchange market will also have the chance to compete with large banks. We will have a very competitive open banking ecosystem, in which service, better offer, agility and technology will make the difference”, he says.

Ferreira emphasizes that adherence to open finance by the population will be gradual.

“Data sharing ends up generating a certain distrust in consumers, making them imagine that it is only important for the financial institution. But that’s not quite right, it will have great benefits when sharing this data, as it will have more product and service offers and more attractive rates in a completely secure and encrypted way with digital certification”, he ponders.


December 15, 2021: Start of certifications of participating institutions

  • Until March 4, 2022: Integration of insurance, open private pension and capitalization
  • Until March 11, 2022: Integration of accreditation services into payment arrangements (card machines)
  • Until March 18, 2022: Integration of foreign exchange transactions
  • Until March 25, 2022: Integration of investment products


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