With an Open Banking model much more comprehensive and ambitious than others around the world, its primary objective is to enhance the market´s efficiency, competitiveness and digitalization of the financial system through innovation with new business models, as well as products and services, where the consumer stands at the centre of this initiative.
In comparison to other countries, the Brazilian model has a unique structure with two sets of controls: the regulated (Brazilian Central Bank) and the self-regulated one (the market, defined as “Convention), with specific and well-defined roles and responsibilities. According to the BCB, this structure will allow the market to have greater flexibility and agility in the implementation and operation of the open banking and make the necessary adjustments through out the initial period, as well as in its development on a long-term horizon.
In relation to the deadlines, the regulation will be effective as ofJune 1st, with the first phase implementation due to November 2020and to be finalized by October 2021. Please see the details of each phase and deliverables below:
It is definitely a beginning of a new era! It is clear how pioneer the Brazil open banking proposal is. With a more advanced model than we observed globally, which is already promoting high-level discussions locally towards Open Finance and the development of Open Data in other sectors. The same was not perceived in other Latin American countries, such as Chile, Colombia and Argentina, but which will probably be influenced in its design in the near future.
The positive results open banking will bring are enormous, especially for consumers, who in addition to financial inclusion and empowerment, will have a range of products and services at lower costs, customized to their needs. Nevertheless, we will also see the construction of new arrangements that will require greater integration, collaboration and trust among its various actors (regulator, market and consumer), which will be key while overcoming the potential challenges that will emerge in this process.
It is a great opportunity for Open Vector to be a part of this process here in Brazil and to active contribute with the experience acquired in the implementation of Open Banking in UK and Mexico, as well as in the construction of this initiative in other Latin American countries and regions globally.
With an Open Banking model much more comprehensive and ambitious than others around the world, its primary objective is to enhance the market´s efficiency, competitiveness and digitalization of the financial system through innovation with new business models, as well as products and services, where the consumer stands at the centre of this initiative.
In comparison to other countries, the Brazilian model has a unique structure with two sets of controls: the regulated (Brazilian Central Bank) and the self-regulated one (the market, defined as “Convention), with specific and well-defined roles and responsibilities. According to the BCB, this structure will allow the market to have greater flexibility and agility in the implementation and operation of the open banking and make the necessary adjustments through out the initial period, as well as in its development on a long-term horizon.
In relation to the deadlines, the regulation will be effective as ofJune 1st, with the first phase implementation due to November 2020and to be finalized by October 2021. Please see the details of each phase and deliverables below:
It is definitely a beginning of a new era! It is clear how pioneer the Brazil open banking proposal is. With a more advanced model than we observed globally, which is already promoting high-level discussions locally towards Open Finance and the development of Open Data in other sectors. The same was not perceived in other Latin American countries, such as Chile, Colombia and Argentina, but which will probably be influenced in its design in the near future.
The positive results open banking will bring are enormous, especially for consumers, who in addition to financial inclusion and empowerment, will have a range of products and services at lower costs, customized to their needs. Nevertheless, we will also see the construction of new arrangements that will require greater integration, collaboration and trust among its various actors (regulator, market and consumer), which will be key while overcoming the potential challenges that will emerge in this process.
It is a great opportunity for Open Vector to be a part of this process here in Brazil and to active contribute with the experience acquired in the implementation of Open Banking in UK and Mexico, as well as in the construction of this initiative in other Latin American countries and regions globally.
With an Open Banking model much more comprehensive and ambitious than others around the world, its primary objective is to enhance the market´s efficiency, competitiveness and digitalization of the financial system through innovation with new business models, as well as products and services, where the consumer stands at the centre of this initiative.
In comparison to other countries, the Brazilian model has a unique structure with two sets of controls: the regulated (Brazilian Central Bank) and the self-regulated one (the market, defined as “Convention), with specific and well-defined roles and responsibilities. According to the BCB, this structure will allow the market to have greater flexibility and agility in the implementation and operation of the open banking and make the necessary adjustments through out the initial period, as well as in its development on a long-term horizon.
In relation to the deadlines, the regulation will be effective as ofJune 1st, with the first phase implementation due to November 2020and to be finalized by October 2021. Please see the details of each phase and deliverables below:
It is definitely a beginning of a new era! It is clear how pioneer the Brazil open banking proposal is. With a more advanced model than we observed globally, which is already promoting high-level discussions locally towards Open Finance and the development of Open Data in other sectors. The same was not perceived in other Latin American countries, such as Chile, Colombia and Argentina, but which will probably be influenced in its design in the near future.
The positive results open banking will bring are enormous, especially for consumers, who in addition to financial inclusion and empowerment, will have a range of products and services at lower costs, customized to their needs. Nevertheless, we will also see the construction of new arrangements that will require greater integration, collaboration and trust among its various actors (regulator, market and consumer), which will be key while overcoming the potential challenges that will emerge in this process.
It is a great opportunity for Open Vector to be a part of this process here in Brazil and to active contribute with the experience acquired in the implementation of Open Banking in UK and Mexico, as well as in the construction of this initiative in other Latin American countries and regions globally.
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