Open banking should bring results for consumers in the medium term, say Brazilian Fintechs

August 24, 2020
Repórter no jornal Valor Econômico.
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valor.globo.com
Sharing information between financial institutions is seen as a challenge for companies

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Fintechs believe that open banking, the standard for sharing financial information, should bring results only in the medium term for the final consumer. The Central Bank will start implementing it in four stages, starting on November 30 this year.

"I see a maturity of open banking in the medium and long term, after 2024", said Fernando Miranda, CEO of Easynvest, at an event in São Paulo, comparing the period with that identified in other countries, such as England. "To have open banking that works, all actors have to play and organize in a more synchronized way."

One of the challenges is to reach a consensus on how to share information between financial institutions, which will be done in the country based on conventions formed with market representatives. "Europe needed less open banking than Brazil, because there was less information asymmetry there," says Sergio Furio, president of Creditas. "In Brazil, I believe it is something for two to three years ahead, because it is impossible to 'turn around' in the short term".

The president of Inter bank, João Vitor Menin, stressed that the information available today for the credit market in Brazil is already abundant, therefore, the digital bank is more skeptical about the transformation that open banking can bring to the market.

According to executives, in 2014 and 2015, banks saw fintechs as harmless and fintechs saw banks as a business with announced death. Now, there are partnerships between both in search of a "win-win". “Five or ten years from now, we will no longer talk about“ bantech ”or“ fintech ”, but about digital financial services. I see a positive relationship between banks and fintechs, with lower costs, but perhaps with greater pressure on revenue ”, says Miranda.

The fintechs have seen disruption in the financial sector starting with payments, migrating to investments, but believe they will soon invade credit. In investments, Miranda stated that Selic at 2% and learning about the need for savings in the crisis could lead to 10 million retail investors on the stock market starting in 2024. The attraction, according to Menin, will be mainly from the middle class.

In credit, Furio, from Creditas, said that in Brazil he is expensive for the distribution network focused on branches, which should be corrected in time, with the presence of new digital channels and access to smartphones.

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.

Fintechs believe that open banking, the standard for sharing financial information, should bring results only in the medium term for the final consumer. The Central Bank will start implementing it in four stages, starting on November 30 this year.

"I see a maturity of open banking in the medium and long term, after 2024", said Fernando Miranda, CEO of Easynvest, at an event in São Paulo, comparing the period with that identified in other countries, such as England. "To have open banking that works, all actors have to play and organize in a more synchronized way."

One of the challenges is to reach a consensus on how to share information between financial institutions, which will be done in the country based on conventions formed with market representatives. "Europe needed less open banking than Brazil, because there was less information asymmetry there," says Sergio Furio, president of Creditas. "In Brazil, I believe it is something for two to three years ahead, because it is impossible to 'turn around' in the short term".

The president of Inter bank, João Vitor Menin, stressed that the information available today for the credit market in Brazil is already abundant, therefore, the digital bank is more skeptical about the transformation that open banking can bring to the market.

According to executives, in 2014 and 2015, banks saw fintechs as harmless and fintechs saw banks as a business with announced death. Now, there are partnerships between both in search of a "win-win". “Five or ten years from now, we will no longer talk about“ bantech ”or“ fintech ”, but about digital financial services. I see a positive relationship between banks and fintechs, with lower costs, but perhaps with greater pressure on revenue ”, says Miranda.

The fintechs have seen disruption in the financial sector starting with payments, migrating to investments, but believe they will soon invade credit. In investments, Miranda stated that Selic at 2% and learning about the need for savings in the crisis could lead to 10 million retail investors on the stock market starting in 2024. The attraction, according to Menin, will be mainly from the middle class.

In credit, Furio, from Creditas, said that in Brazil he is expensive for the distribution network focused on branches, which should be corrected in time, with the presence of new digital channels and access to smartphones.

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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