Brazil's Open Finance: Elevating from Infrastructure to Quality and Governance in the Digital Era
Brazil's Open Finance is entering a new phase, prioritizing data quality, customer journey efficiency, and secure ecosystem expansion. With millions of users and consents, the Central Bank is reviewing its partnership model to ensure data control and security, solidifying the infrastructure for the future of digital financial services.
Brazil's Open Finance ecosystem has reached a pivotal stage, transitioning from its initial infrastructure implementation phase to a period of refinement focused on quality and efficiency. After six years of development, the Brazilian model, globally recognized for its comprehensive scope and rapid deployment, is now prioritizing operational optimization. This evolution mirrors a broader global macroeconomic trend towards the accelerated digitalization of financial services, where interconnectivity and data sharing are becoming foundational pillars for innovation and competition across the banking and payments sectors.
This new phase of Open Finance emphasizes the integrity of shared data and the seamlessness of customer journeys. With over 100 million active consents and approximately 45 million users engaging last year, the sheer volume of information processed necessitates a rigorous focus on data quality to ensure the system's trustworthiness and utility. Projections indicate exponential growth, with expectations to reach 300 million consents and 60 million monthly requests, underscoring the urgency of establishing a robust and reliable foundation to support this expansion.
Concurrently with the pursuit of operational excellence, Brazil's Central Bank is reviewing the regulatory framework for partnerships within Open Finance. The objective is to strengthen governance and ensure that data control genuinely remains with the client, even when non-direct participants in the ecosystem receive information via authorized institutions. This review is crucial for mitigating security and privacy risks, which are fundamental elements for the sustainability and credibility of any open financial system, aligning with international best practices in data protection and transparency. Clarity in responsibilities and transparent operationalization of partnerships are vital for the model's continued expansion and acceptance.
Original source: Valor Econômico
Source: Valor Econômico