Brazilian Central Bank Open Banking

Thomaz Teixeira
May 16 · 1 min read

At the same time fintechs become popular and bring service innovation to finance industry, neobanking talks gets mainstream, data protection is sinequanon, and cryptocurrency technology looms with features that won’t go away such as global, continuous markets.

In this context banking industry faces open banking movement. As traditional banks still hold their place as gatekeepers of regulated finance, open banking regulation sets the protocol of how their role should provide access to newcomers.

No less than any other market, Brazilian bank industry is highly concentrated and competition forces may w more a passive than active behavior towards innovation, hence regulatory parameters are key market drivers.

And Brazilian Central Bank (BCB) diligent concern on how competition can help finance efficiency points to the future when technological innovation can bring democratization in a less bureaucratic and more digital environment.

This briefing (in Portuguese) delivered in May ’19 follows recent Nov ’18 call for debate over competition and market efficiency in light of open banking.

At present BCB agenda is presented as key efficiency drivers: inclusion, competitiveness, transparence, financial education, in a broader push for Brazilian business competiveness.

Open banking, according to BCB, respond to market forces such as intense use of granular data intelligence, technological innovation, users control of their own data, and entrance of new players in the market.

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