Post by shikapatho on Oct 18, 2023 5:03:21 GMT -6
Brazil has increasingly invested in modernizing its banking system, encouraging traditional institutions and fintechs to increasingly invest in innovation and in products and services that better serve customers. And open finance is one of these facilities.
In order to continue the Open Financial System whatsapp database in Brazil, the National Monetary Council (CMN) approved the Open Finance regulation, which expands data sharing initiated by open banking .
While open banking covered traditional financial products, open finance will also expand this information sharing to information about other financial services such as foreign exchange, insurance, accreditation, investments and pensions.
This expansion, which brought a new term, raised many questions for bank customers. Institutions such as Banco Cental (BACEN) and CMN now have the challenge of explaining to bank and fintech customers what changes with the new resolution, what are the advantages and risks of accepting this broader data sharing and how proceed to do so.
Differentiating these two concepts raises some doubts and challenges, especially at a time when there is so much talk about the treatment and protection of people's data. It is important to understand whether it is safe to join new developments like this. Check out in this article what open finance means and how to understand its risks.
Brazilian institutions, especially led by BACEN, have increasingly sought to modernize financial transactions in the country, bringing revolutionary innovations, as was the case with Pix and open banking. And the regulations and actions of these institutions demonstrate that they will not stop there: to better serve the customer, more options are emerging to encourage innovation and competitiveness in financial institutions, as is the case with open finance.
What is open finance, is it safe, should I join or not? Stay with us in this article and discover everything about this new feature!
Based on this innovation, in addition to the data that could already be shared, institutions will also be able to share investment, exchange, pension services, etc. And, out of respect for the customer and the General Data Protection Law (LGPD), this information can only be shared when requested and authorized by the customer, who will indicate which institution shares and receives their data.
For this reason, it is very important to understand whether this sharing is interesting for you, as only after this reflection will you be able to choose whether or not to be part of open finance.
In addition, there was also a need for greater monitoring of institutions to ensure that operations relating to data sharing are being carried out in accordance with the provisions of specific regulations, in addition to complying with the rules for collecting, processing and storing data established in the LGPD.
How did the implementation happen?
The implementation of this new data sharing solution between financial institutions was based on a joint project between the CMN and BACEN , in joint resolution number 4. Supported by joint resolution number 4 and the LGPD, the open finance initiative is being implemented in financial institutions.
It will work as follows: you select the destination financial institution with which you want to share your data. There, you should find an open banking or open finance option (which will be described by the institution itself).
After that, simply request that the data be shared and indicate which institution will be the source. At this point, you will be directed to confirm data sharing at the originating institution.
After confirming sharing, you must wait for contact from the institution. This process can only be done through digital channels in institutions that are authorized to operate by the Central Bank.
In order to continue the Open Financial System whatsapp database in Brazil, the National Monetary Council (CMN) approved the Open Finance regulation, which expands data sharing initiated by open banking .
While open banking covered traditional financial products, open finance will also expand this information sharing to information about other financial services such as foreign exchange, insurance, accreditation, investments and pensions.
This expansion, which brought a new term, raised many questions for bank customers. Institutions such as Banco Cental (BACEN) and CMN now have the challenge of explaining to bank and fintech customers what changes with the new resolution, what are the advantages and risks of accepting this broader data sharing and how proceed to do so.
Differentiating these two concepts raises some doubts and challenges, especially at a time when there is so much talk about the treatment and protection of people's data. It is important to understand whether it is safe to join new developments like this. Check out in this article what open finance means and how to understand its risks.
Brazilian institutions, especially led by BACEN, have increasingly sought to modernize financial transactions in the country, bringing revolutionary innovations, as was the case with Pix and open banking. And the regulations and actions of these institutions demonstrate that they will not stop there: to better serve the customer, more options are emerging to encourage innovation and competitiveness in financial institutions, as is the case with open finance.
What is open finance, is it safe, should I join or not? Stay with us in this article and discover everything about this new feature!
Based on this innovation, in addition to the data that could already be shared, institutions will also be able to share investment, exchange, pension services, etc. And, out of respect for the customer and the General Data Protection Law (LGPD), this information can only be shared when requested and authorized by the customer, who will indicate which institution shares and receives their data.
For this reason, it is very important to understand whether this sharing is interesting for you, as only after this reflection will you be able to choose whether or not to be part of open finance.
In addition, there was also a need for greater monitoring of institutions to ensure that operations relating to data sharing are being carried out in accordance with the provisions of specific regulations, in addition to complying with the rules for collecting, processing and storing data established in the LGPD.
How did the implementation happen?
The implementation of this new data sharing solution between financial institutions was based on a joint project between the CMN and BACEN , in joint resolution number 4. Supported by joint resolution number 4 and the LGPD, the open finance initiative is being implemented in financial institutions.
It will work as follows: you select the destination financial institution with which you want to share your data. There, you should find an open banking or open finance option (which will be described by the institution itself).
After that, simply request that the data be shared and indicate which institution will be the source. At this point, you will be directed to confirm data sharing at the originating institution.
After confirming sharing, you must wait for contact from the institution. This process can only be done through digital channels in institutions that are authorized to operate by the Central Bank.