Open Banking
Set of rules and technologies that will allow the sharing of customers data and services between financial institutions through the integration of their platforms via APIs.
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The financial industry has been experiencing major disruptions in recent years with the emergence of Fintechs and market changes.
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The Central Bank has played a leading role in this transformation agenda,creating new regulations that allowed greater competitiveness with the emergence of fintechs such as PEPs (peer to peer landing) , ECDs (direct credit companies) and IPs (payment institutions) , and more recently with the implementation of PIX (instant payment system). The Brazilian Central Bank also leads the Open Banking implementation project in Brazil which started to be implemented in February 2021. SEPs , SCDs and IPs , and more recently with the implementation of PIX . He also leads the Open Banking implementation project in Brazil, which began to be implemented in February 2021.
Talking about Open Banking
Benefits
Customers and Financial Institutions will benefit from Open Banking. We will see the competitiveness increases and the raising of products and financial services for customers.
Who participates
Financial Institutions S1 (porte igual ou superior a 10% do GDP (size equal to or greater than 10 % of GDP or with Offshore relevant activities) and S2(size less than 10 % and equal to or greater than 1 % of GDP). Optional for others.
LGPD
Customer's financial data are their property. So they can decide with who they would like their data to be share or migrated. This data transfer will be implemented with Open Banking.
Consent
Companies should share information about their customers (individuals and companies) through consent and authorization process, givenan objective and deadline. physics or legal Companies should share information about their customers (individuals and companies) through consent and authorization process, givenan objective and deadline.
API integration
Communication between the participating institutions will take place through APIs, technology that will allow data to be shared in a safe and standardized way.
Costs
The sharing of data by donor institutions cannot be charged. Receiving institutions and customers will benefit as they offer new products and services, with new prices and fees offers.
Regulation
Open Financial System
Regulation
The Central Bank started the process of implementing Open Banking in April 2019 with the announcement 33,455 that established the main guidelines that guided the proposed regulation of the model adopted in Brazil.
Technology
Open Banking Integration
What is an API?
To simplify the understanding, we can say that the API is the computer program interface made available by companies to give access to their data, products and services over the Internet. As an example,it is through APIs that applications are able to use the map features of Google on their platforms. The API defines the technical aspects for these integrations.
What is an Endpoint ?
To make the APIs accessible, companies need to provide addresses on the internet where they can be reached. These addresses are called Endpoints, or URL (Uniform Resource Locator). All institutions participating in Open Banking providetheir and customers data, and services through their APIs, which are accessed from their endpoints or addresses on the internet.
And de security
The APIs from the first phase of Open Banking (called opendata), once they handle public data about the participants institutions, don't need registration or authentication to be accessed. APIs of the other phases could only be accessed by companies with advanced registered within the data providers. Customer consent and authorization are mandatory to share their information.
The information and opinions contained herein do not reflect the position of any financial companies or institutions to which the participants or creators of the openB portal are linked or associated with.