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:
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.