Open Finance: Lessons from Brazil
More and more countries are implementing open finance, a multilateral and open data-sharing regime that enables all parties that meet defined requirements to exchange data, including customer data. The policy motivations for open finance range from increasing competition in concentrated financial markets by allowing new entrants to engage with consumers and their financial data more easily; to encouraging product innovation through better consumer data and enabling payment initiation; to deepening financial access and inclusion for consumers.
Brazil’s rapid expansion of open finance shows its potential to transform financial services. Less than two years after its launch, Brazil’s open finance ecosystem reported over 27 million customers with 41 million accounts participating as of September 2023. This early success and sharp uptake can be attributed to enabling factors such as the implementation of the interoperable, fast payments system (Pix), and a vibrant fintech market (e.g., Mercado Pago, PicPay, NuBank). CGAP recently conducted research on the implementation of open finance in Brazil. This study conducted customer research in July 2023 with a nationally representative sample of 2000 respondents which offers valuable insights for Brazil as well as other markets interested in implementing open finance.
In this webinar, the authors will present the main findings from this research as well as provide a background of Brazil’s journey of implementing Open Finance from a regulator and financial services provider perspective. Following the presentation, there will be a moderated panel discussion with panelists who represent different stakeholders within Brazil’s Open Finance ecosystem including public and private sector actors.