Update on Open Banking in Brazil | Hogan Lovells

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[co-author: Ana Laura Pongeluppi]

Open banking in Brazil, the system created by the Brazilian Central Bank for sharing data, information and financial services, is entering its fourth phase.

Open banking is a system created by the Central Bank of Brazil for the sharing of data, information and financial services by bank customers on technological platforms (only with the authorization of these customers), in order to that they can access better rates, conditions and financial services created by the Central Bank of Brazil.

The second phase of the program, which went into effect in August, involved sharing customers’ registration and transactional data, with their prior consent. As part of the implementation of this phase, financial institutions in Brazil are required to implement application programming interfaces (APIs) to allow customers to share their data. With this information, the idea is that banks and fintechs, for example, could offer personalized and cheaper products to consumers.

From the end of October, the Central Bank of Brazil began implementing a third phase. The service for sharing payment transactions between participating institutions began at the end of October, as well as the system for sharing credit transaction proposals between financial institutions and correspondents in Brazil. Financial institutions can share information about money transfer services through PIX, an instant payment system created by the Central Bank of Brazil that has been in place since late last year.

The next step in the implementation of the Open Banking system in Brazil provides for the exchange of information on currencies, investments, pension plans and insurance services. This stage is currently scheduled to begin on December 15. Additional implementation steps are expected to take place in the first half of 2022. The information presented here was obtained from publicly available sources and is provided for informational purposes only. Nothing in this document constitutes an opinion or advice regarding Brazilian laws or regulations.

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