By Umberto Rosti
Currently the Central Bank of Brazil has been working on the regulation of Open Banking in Brazil.
Generally speaking, Open Banking will enable third parties to access bank account information through APIs, provided that the customer has given permission and consent.
The basic principle is that all financial data is from users and not from financial institutions.
Open Banking emerged in Europe a few years ago with the Payment Services Directive (PSD2), which aimed to end the monopoly on bank-held financial services, encouraging competition and technological innovation, as well as enhancing consumer protection, safety and competitiveness.
In Brazil, BACEN published communiqué no. 33,455 that has the fundamental requirements for the implementation of this model in Brazil, containing its purpose, scope and regulatory strategy, in addition to the actions that will be implemented.
In BACEN's view, Open Banking & #8220; Considering the sharing of data, products and services by financial institutions and other authorized institutions, at the discretion of their clients, in the case of data related to them, through the opening and integration of information systems platforms and infrastructures, in a secure manner. , agile and convenient."
BACEN shall adopt a model that will make participation compulsory in stages, covering financial institutions, payment institutions and other institutions authorized to operate by BACEN itself.
Open Banking deployment should cover:
1. data on products and services offered by participating institutions (location of service points, product characteristics, contract terms and conditions and financial costs, among others)
2. customer registration data (name, affiliation, address, among others)
3. customer transactional data (data related to deposit accounts, credit operations, other products and services contracted by customers, among others)
4. payment services (payment initiation, funds transfers, product and service payments, among others)
The normative acts shall be placed for public consultation in the second half of 2019.
The model is expected to be implemented by the end of 2020. With regulations by the Normative 4,658 and the strong impact of LGPD (General Data Protection Act), we will have a lot of work and changes in this environment.
And you, what have you been doing to prepare for the regulatory tsunami of the coming years?