Brazil has taken another step towards further developing its financial services ecosystem by approving the implementation of open banking.
The country's central bank has also approved and issued guidelines to be considered while the model is implemented.
By rolling out open banking regulations, Brazil hopes to increase competition and effectiveness of service provision while protecting personal data in line with the recently approved data protection regulations.
The Central Bank's policy determines which information should initially be shared among financial institutions, including products and services offered, including the locations of service provision and contractual terms, as well as and customer data including social security numbers, name, and address.
The list of data to be initially shared also includes customer transactional data, such as deposit accounts and credit operations, in addition to data referring to payment services, such as payments for products and services as well as transfers.
In the second half of 2019, public consultations about the introduction of the model should take place as well as minimum requirements for implementation as well as an overall schedule.
According to the Brazilian Central Bank, the model should start being introduced in the second half of 2020.