💣 Viene el gran encuentro in-person de la industria de pagos digitales de Latam. Pre-regístrate a la Paytech Conf 2024
Por favor verifica tu e-mail para tener acceso completo al Hub haciendo click al link enviado a youremail@gmail.com
Reenviar correo de verificación

Open Banking Security Standards in Brazil, Scheduled to Start Operating in November, are Still Under Analysis by the Central Bank

April 30, 2020
Por
Carmen Nery
Carmen Nery
Colaboradora at Valor Econômico S/A
📷
PaymentsJournal
System will give customer autonomy in the use of their bank details, facilitating sharing with other institutions
Contenido para Usuarios 🔒

The security issues of two major initiatives presented by the Central Bank that will change the face of the financial system are still being defined: open banking and instant payment, scheduled to start operating in November. Leandro Vilain, business and operations director at Febraban, explains that open banking will give the customer autonomy in the use of their bank details, facilitating sharing with other institutions.

Carlos Eduardo Brandt, deputy head of the competition and financial market structure department at the Central Bank, says that instant payment will facilitate and cheapen financial transactions with electronic transfers in real time 24 hours a day, seven days a week, the year whole. It began to be designed in 2018 by BC and discussed with the market in 2019. In February, BC announced the PIX brand.

“In the instant payment, the BC was disclosing technical specifications for consultation with the market even before the regulation was released. In open banking, the BC discussed the regulatory issues a lot and all the technical deepening is still being developed by the market, under the supervision of the monetary authority ”, says Adriano Volpini, director of corporate security at Itaú Unibanco.

The public consultation on open banking was opened on 28 November 2019 and ended on 31 January. According to João André Pereira, head of the BC's financial system regulation department, more than 400 contributions are being analyzed, many related to security. The final rule will be announced by the end of May, and up to 360 days later, there will be implementation in three stages.

"The market will have to structure a convention, defining the operational elements of governance, standardization of APIs, security and cost sharing", says Pereira.

Caio Fernandes, deputy head of the BC's information technology department, observes that the risks involving data leakage, arise from the second phase, when registration and account data will be shared. After the implementation of open banking, the entire financial market will operate on a standardized technological model. To this end, a working group was created coordinated by the BC and made up of six representatives of the entities of the financial system: Febraban, Abecs, ABBC, OCB, ABCD, Abipag, Abranet, CâmaraNet and ABFintech.

“Open banking will allow apps to work more efficiently, without having to access internet banking”, explains Diego Perez, executive director of the Brazilian Association of Fintechs (ABFintech).

Caio Fernandes informs that, for instant payment, the BC took advantage of the experience of the Brazilian Payment System (SPB) and TED and features of encryption, double authentication and anti-scan solution, to prevent robots from testing random numbers until accessing the data of users, as in Australia's payment system.

A critical point is regarding liability in the event of a leak. Pereira explains that strict responsibility is already foreseen in consumer relations, establishing that, in principle, everyone is responsible, unless they prove otherwise. The concept was confirmed in the General Personal Data Protection Act (LGPD).

“There will be a large flow of information between people, with a risk of leakage and misuse of information. It will take discipline and each agent will be responsible for their participation in the process. The customer can start the transaction at the bank, and it can be attacked at another link in the chain ”, warns Volpini, from Itaú Unibanco.

Vilain, from Febraban, points out that data sharing requires user consent in both institutions: the donors and the recipients. They must use the data for the specific purpose and accepted by the customer. "The new processes in this ecosystem can be one of the biggest risks of fraud, since there will be several portals where the user can start the data sharing process", warns Vilain.

For fintechs, the opportunities are endless. Ralf Germer, CEO of PagBrasil, says that open banking will allow the company to access information to analyze credit risk for retailers. Bankly, Access's banking as a service solution, already provides APIs for partners. "To avoid leaks and fraud, we use the model that the BC has already defined for three authentication factors," says Marilyn Hahn, president of Bakly.

Loise Nascimento, legal and regulatory manager at MovilePay, the MovilePay Group's payment fintech, says the solution already allows payment by QR Code, through the iFood app. "In the future, open banking can be used to offer credit," he concludes.

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.

The security issues of two major initiatives presented by the Central Bank that will change the face of the financial system are still being defined: open banking and instant payment, scheduled to start operating in November. Leandro Vilain, business and operations director at Febraban, explains that open banking will give the customer autonomy in the use of their bank details, facilitating sharing with other institutions.

Carlos Eduardo Brandt, deputy head of the competition and financial market structure department at the Central Bank, says that instant payment will facilitate and cheapen financial transactions with electronic transfers in real time 24 hours a day, seven days a week, the year whole. It began to be designed in 2018 by BC and discussed with the market in 2019. In February, BC announced the PIX brand.

“In the instant payment, the BC was disclosing technical specifications for consultation with the market even before the regulation was released. In open banking, the BC discussed the regulatory issues a lot and all the technical deepening is still being developed by the market, under the supervision of the monetary authority ”, says Adriano Volpini, director of corporate security at Itaú Unibanco.

The public consultation on open banking was opened on 28 November 2019 and ended on 31 January. According to João André Pereira, head of the BC's financial system regulation department, more than 400 contributions are being analyzed, many related to security. The final rule will be announced by the end of May, and up to 360 days later, there will be implementation in three stages.

"The market will have to structure a convention, defining the operational elements of governance, standardization of APIs, security and cost sharing", says Pereira.

Caio Fernandes, deputy head of the BC's information technology department, observes that the risks involving data leakage, arise from the second phase, when registration and account data will be shared. After the implementation of open banking, the entire financial market will operate on a standardized technological model. To this end, a working group was created coordinated by the BC and made up of six representatives of the entities of the financial system: Febraban, Abecs, ABBC, OCB, ABCD, Abipag, Abranet, CâmaraNet and ABFintech.

“Open banking will allow apps to work more efficiently, without having to access internet banking”, explains Diego Perez, executive director of the Brazilian Association of Fintechs (ABFintech).

Caio Fernandes informs that, for instant payment, the BC took advantage of the experience of the Brazilian Payment System (SPB) and TED and features of encryption, double authentication and anti-scan solution, to prevent robots from testing random numbers until accessing the data of users, as in Australia's payment system.

A critical point is regarding liability in the event of a leak. Pereira explains that strict responsibility is already foreseen in consumer relations, establishing that, in principle, everyone is responsible, unless they prove otherwise. The concept was confirmed in the General Personal Data Protection Act (LGPD).

“There will be a large flow of information between people, with a risk of leakage and misuse of information. It will take discipline and each agent will be responsible for their participation in the process. The customer can start the transaction at the bank, and it can be attacked at another link in the chain ”, warns Volpini, from Itaú Unibanco.

Vilain, from Febraban, points out that data sharing requires user consent in both institutions: the donors and the recipients. They must use the data for the specific purpose and accepted by the customer. "The new processes in this ecosystem can be one of the biggest risks of fraud, since there will be several portals where the user can start the data sharing process", warns Vilain.

For fintechs, the opportunities are endless. Ralf Germer, CEO of PagBrasil, says that open banking will allow the company to access information to analyze credit risk for retailers. Bankly, Access's banking as a service solution, already provides APIs for partners. "To avoid leaks and fraud, we use the model that the BC has already defined for three authentication factors," says Marilyn Hahn, president of Bakly.

Loise Nascimento, legal and regulatory manager at MovilePay, the MovilePay Group's payment fintech, says the solution already allows payment by QR Code, through the iFood app. "In the future, open banking can be used to offer credit," he concludes.

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.

Este contenido es solo para
usuarios Prime 👑 del Hub.

Hacer upgrade ▸
Apoyado por:
Contacta al equipo
No items found.

Fintechs en
tendencia del Hub

No items found.

Brasil 🇧🇷

Ecosistema Fintech

Últimos movimientos

¿Alguna novedad que quieras compartirnos?
escrÍbenos a hola@latamfintech.co
¿Alguna novedad que quieras compartirnos?
escrÍbenos a hola@latamfintech.CO

Más Insights

Por
Chubb
Chubb
The world's largest publicly traded property and casualty insurance company
Insurtech 🏆

Nuestra comunidad

WHATSAPP
✨ Nuevo!
Tenemos un canal de Whatsapp donde contamos todos los movimientos en la industria.
Usuario pRIME 👑
Acceso ilimitado. Desbloquee la cobertura exclusiva, entrevistas con CEOs, eventos especiales y más.
Activar suscripción
RESUMEN SEMANAL
Todas las semanas envíamos a tu email un resumen con todos los avances en el ecosistema Fintech.
Abrir el Blueprint
Grupo de SLACK
Tenemos un grupo de Slack con todos los miembros registrados del Hub para que sigamos conversando.
uNIRSE AL GRUPO