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Nubank obtains 46% of the data exchanged through Open Finance in Brazil

June 21, 2023
Por
Valor Econômico
Valor Econômico
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According to information from the governance structure of the ecosystem, the digital bank was the recipient in 46% of API (Application Programming Interface) calls made from January to May 26. In the period, it obtained information from other institutions 7.4 billion times.

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Nubank easily outperforms the second placed bank, Itaú. The largest bank in the country was the recipient of 23% of the calls. In the sequence appear Banco do Brasil (14%); Mercado Pago (7%) and Bradesco (4%).

APIs are the technological enabler for the institutions' systems to connect and traffic information. It is the standard through which institutions "talk" in the open finance ecosystem. The ranking of the calls considers the volumes from phase 2 of implementation, when customer data started to be shared de facto between participants. These transactions require user consent.

It is natural for entry-level banks to make more use of open finance. - Eliseu Tudisco


As API calls involve an exchange of information, it is possible to analyze the numbers also from the point of view of the transmitter, i.e. when one institution sends data to another. In this case, Nubank also leads, but the difference is smaller. The fintech represents 18% of the calls in the year, while Itaú has 14%. Mercado Pago has 13% of the total; Santander, 12%; and Caixa, 11%.

Open Finance — Foto: Arte Valor

Eliseu Tudisco, a partner at Strategy&, a strategic consulting firm of PwC, believes that the data reflect Nubank's efforts in trying to foster the use of open finance among its clients. In his view, the fintech's focus on the system is explained both by the interest in continuing to gain market share and by the fact that it is a new institution, with more modern systems. This, he explains, facilitates the effective use of the information collected in comparison with incumbent banks, which have to deal with legacy systems.

"For new entrant institutions, it is very attractive to have a broad view of the client. Even because of their market positioning, it is natural for them to make more use of open finance than a bank that is already a leader," says Tudisco. He adds that there is also the issue of data use. "Nubank built its technology using a more modern architecture, in which it is already able to work with information more easily. That's why it ends up encouraging the customer to give consent so much."

In a statement, Nubank says that the representative participation as a recipient is mainly explained by the high volume of user consents, which already exceeds 7.8 million. According to the bank, the constant open API calls allow the delivery of "contextual and personalized recommendations to customers." "From the data obtained via open finance, we want to offer solutions that add value to our customer, such as updating and analyzing information for granting credit, whether for cards or loans, as well as for alert experiences or developing new features, such as viewing balances from other banks through the app."

One example, according to the bank, is the "overdraft alert" recommendation, in which the institution sends notifications when an account linked to a predetermined CPF goes into negative balance. The customer can view the balance of each account and, if he has enough balance in Nubank, transfer the necessary amount immediately.

According to data from open finance, 16 billion API calls were made in 2023 by the end of May. The success rate is around 95 percent. Almost half of the transactions concern transactional account data.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y de ellas son responsables sus autores. No reflejan ni comprometen el pensamiento u opinión de Latam Fintech Hub, por lo cual no pueden ser interpretadas como recomendaciones emitidas por la platafomra. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista sobre el ecosistema Fintech.

Nubank easily outperforms the second placed bank, Itaú. The largest bank in the country was the recipient of 23% of the calls. In the sequence appear Banco do Brasil (14%); Mercado Pago (7%) and Bradesco (4%).

APIs are the technological enabler for the institutions' systems to connect and traffic information. It is the standard through which institutions "talk" in the open finance ecosystem. The ranking of the calls considers the volumes from phase 2 of implementation, when customer data started to be shared de facto between participants. These transactions require user consent.

It is natural for entry-level banks to make more use of open finance. - Eliseu Tudisco


As API calls involve an exchange of information, it is possible to analyze the numbers also from the point of view of the transmitter, i.e. when one institution sends data to another. In this case, Nubank also leads, but the difference is smaller. The fintech represents 18% of the calls in the year, while Itaú has 14%. Mercado Pago has 13% of the total; Santander, 12%; and Caixa, 11%.

Open Finance — Foto: Arte Valor

Eliseu Tudisco, a partner at Strategy&, a strategic consulting firm of PwC, believes that the data reflect Nubank's efforts in trying to foster the use of open finance among its clients. In his view, the fintech's focus on the system is explained both by the interest in continuing to gain market share and by the fact that it is a new institution, with more modern systems. This, he explains, facilitates the effective use of the information collected in comparison with incumbent banks, which have to deal with legacy systems.

"For new entrant institutions, it is very attractive to have a broad view of the client. Even because of their market positioning, it is natural for them to make more use of open finance than a bank that is already a leader," says Tudisco. He adds that there is also the issue of data use. "Nubank built its technology using a more modern architecture, in which it is already able to work with information more easily. That's why it ends up encouraging the customer to give consent so much."

In a statement, Nubank says that the representative participation as a recipient is mainly explained by the high volume of user consents, which already exceeds 7.8 million. According to the bank, the constant open API calls allow the delivery of "contextual and personalized recommendations to customers." "From the data obtained via open finance, we want to offer solutions that add value to our customer, such as updating and analyzing information for granting credit, whether for cards or loans, as well as for alert experiences or developing new features, such as viewing balances from other banks through the app."

One example, according to the bank, is the "overdraft alert" recommendation, in which the institution sends notifications when an account linked to a predetermined CPF goes into negative balance. The customer can view the balance of each account and, if he has enough balance in Nubank, transfer the necessary amount immediately.

According to data from open finance, 16 billion API calls were made in 2023 by the end of May. The success rate is around 95 percent. Almost half of the transactions concern transactional account data.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y solamente sus autores son responsables de ellas. No reflejan ni comprometen el pensamiento o la opinión del equipo de Latam Fintech Hub y, por lo tanto, no pueden interpretarse como recomendaciones emitidas por la plataforma. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista en el ecosistema Fintech.
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