BCB Consults on Regulation for Implementation of Open Banking System

For the purpose of data sharing, the largest financial institutions, in the case of those with a size equal to or greater than 1% of GDP or that carry out relevant international activity, members of segments S1 and S2, according to prudential regulation, are obligated to participate. In turn, other institutions authorized by BCB may participate, provided that they have a dedicated interface for sharing, as a data donor institution, and register their participation in a participant repository defined in the agreement between the participants. Among other practical applications, open banking favors the emergence of business models that make it easier to compare products and services available in the financial system, helping to create a more competitive and efficient environment for offering financial services, including credit and payment operations. In Brazil, the open banking model will be implemented in four stages: 

• The first stage involves data sharing of products and services offered by financial institutions. Open Banking should share information about access channels and the characteristics of their products and services related to deposit or payment accounts, as well as credit operations, such as their prices and target audience. 
• The second stage involves customer registration and transaction data. On the prior consent of a customer, a financial institution will share the registration and transaction data related to deposit and payment accounts as well as credit transactions.
• The third stage, with the prior consent of the client, will involve services of referral of credit proposal through correspondents in the country and initialization of payments. The latter will allow the payment transaction instruction, at the customer's request, in respect of a deposit or payment account through an institution that will not necessarily participate in the financial settlement of the transaction.
• In the fourth phase, data will be shared from other products and services, such as investments and insurance.

Related Links (in Portuguese)

• Press Release
• Consultation

Comment Due Date: January 31, 2020

Keywords: Americas, Brazil, Banking, Open Banking, Data Sharing, Fintech, BCB