Open Finance: understand how it works and its advantages for companies

By Marcelo Gomez

Open Finance has been considered a major revolution in the market. This type of operation will bring advantages to companies, which will be able to improve their financial management based on new possibilities of control and visibility of solutions.

Is Open Finance different from Open Banking?

In fact, Open Finance has broadened the concept of Open Banking, including more financial institutions in the system. The Central Bank of Brazil started to use with this broader title, as most of its projects are outside the traditional banking model.

How will Open Finance work?

What is the authorization process for data sharing?

Institutions will only be allowed to share data from clients who have actively requested sharing after three steps:

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All participating institutions must ensure that sharing can be terminated at any moment.

Is Open Finance safe?

The process is carried out in a digital environment with several security layers, under supervision of the Central Bank.

Only authorized institutions can participate, and these already have a number of security policies for financial operations.

There are also strict cybersecurity rules specific to Open Finance, as well as defined criteria for the accountability of institutions and their leaders.

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What are the advantages of Open Finance for companies?