More than 1,000 financial institutions will have mandatory participation in Open Banking

The Central Bank has defined rules for institutions that will have to cede data to Open Banking.

More than 1,000 financial institutions will be obligated to participate in the Open BankingNOTICS

The Central Bank of Brazil released last Friday a list of 1,065 financial institutions that will be obliged to participate in the Open Banking system, which will begin to be implemented in February 2021.

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According to the Central Bank, all of Brazil’s large banks are in the group, but some smaller institutions and cooperatives will also have an obligation in the system.

The regulations of the open banking system, defined by the Central Bank, had already stipulated the obligatory participation of institutions in segments 1 (S1) and 2 (S2).

Therefore, financial institutions with a size equal to or greater than 10% of the country’s GDP or with an important international activity (S1) are obliged, in addition to institutions with a size greater than 1% of GDP (S2). See the complete list.

Open Banking provides institutions‘ financial data, allowing customers to gather data from different banks on a single platform.

Pix breaks record and Central Bank already registers 100 million keys in the system
In recent weeks, the system has been the subject of dispute between major banks and fintechs. The banks said they were not ready to make customer data available safely and asked for a postponement of the first phase, which would begin on 30 November. The Central Bank decided to postpone it until February 2021.

According to the Central Bank, the efforts needed to combat the Covid-19 pandemic impacted the working processes of the institutions participating in open banking. It justified this:

„The need to adapt institutions‘ systems due to other regulatory actions, such as Pix and the registration of card receivables, was also taken into account.

In addition to Open Banking, Pix, the Central Bank’s instant transaction system, reached the important mark of 100 million keys registered this week.