Publicado em 05/05/2020

Covid-19 | National Monetary Council and Central Bank regulate Open Banking in Brazil

By means of Circular Bacen No. 4,015, dated 05.04.2020, and CMN and Bacen Joint Resolution No. 1, dated 05.04.2020, National Monetary Council (Conselho Monetário Nacional – Cmn) And Central Bank (Banco Central – Bacen) regulated Open Banking (Sistema Financeiro Aberto) in Brazil.

The new regulation allows, upon the client’s prior consent, the standardized sharing of data and services through the opening and integration of systems, by financial institutions, payment institutions and other institutions authorized to operate by Bacen.

The new model aims at integrating financial services and reducing information asymmetry between financial service providers, with the expectation of increasing efficiency, competitiveness and transparency in the national financial system. One relevant consequence of the new regulation is also the enhanced control over financial data granted to consumer themselves, in line with a worldwide trend of heightened concerns over personal data.

The approved normative acts provide for, among other matters, the included scope of data and services of the participating institutions, the consent of the client and authentication, the convention to be signed between the participating institutions to define the technical standards and operational procedures for implementing Open Banking.

Open Banking will be implemented in 4 phases, commencing on 11.30.2020 and the expected completion date is 10.25.2021, considering the following phases:

  • Phase I: public access to data from institutions participating in Open Banking on customer service channels and products and services related to deposit or savings accounts, payment accounts or credit operations;
  • Phase II: sharing between participating institutions of client and representative registration information, as well as client transaction data regarding the products and services included in Phase I; 
  • Phase III: sharing of the payment transaction initiation service between participating institutions, as well as of the service of forwarding of credit operation proposal between financial institutions and correspondents in the country, which may have been contracted for this purpose; and 
  • Phase IV: expansion of the scope of data to include, among others, foreign exchange operations, investments, insurance and open supplementary pension plans, both in terms of publicly accessible data and transaction data shared between participating institutions.

The regulation for Open Banking in Brazil can be highlighted for its notable advancement in relation to other regulatory proposals around the world. With the enactment of these new rules and the publication of a well-defined schedule for implementation, this scenario creates opportunities for new business models in the financial sector and makes room for new products and services that take advantage of the considerable competitive potential created by the integration of financial systems and information.

Our teams of Project Finance, Credit Operations, Banking Law and Capital Markets, Digital Law and Technology will be available for any clarification required and to assist in respect of the above measures.