After Pix: Brazil projects 400 open banking institutions in 2021

Despite lack of knowledge among the population today, open banking is set to gain traction with its launch in 2021.

After Pix: Brazil projects 400 open banking institutions in 2021NOTÍCIAS

With the full implementation of the Central Bank’s instant transfer system, Pix, this week, financial institutions are already starting to turn all their eyes to the next innovation in the financial system: open banking, scheduled for 2021.

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According to an analysis by the consultancy Bip published by Estadão, Brazil is expected to have 400 institutions in the open banking sector by 2021, almost 30 times more than the current figures.

To reach the projection, Bip took into account the high concentration in the financial market and the initial numbers of Pix, which has 750 registered institutions.

Open banking will ensure the portability of customers‘ financial information and allow services and platforms to aggregate data from banks, brokers and exchanges into a single API.

Data sharing should start with 13 major banks, the report says, but in the next 12 months the number should reach 400, with an average investment of R$15 million in the first year of the system.

The consultancy Bip already has experience in monitoring the implementation of open banking in other countries, such as Italy, Spain and the United Kingdom. In Brazil, for the time being, the consultancy has been hired to seek technological solutions for more than 100 banks members of the Brazilian Association of Banks (AABC).

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Traditional institutions study business plans and partnerships that serve open banking, even considering the formation of consortiums with fintechs and smaller banks, avoiding very large investment contributions.

In the experience of open banking in Europe, explains Bip, financial information aggregators have seen the customer base grow 70% in one year, with increased revenues in the wake of new financial products and services unblocked by the launch of open banking.

Earlier this month, a survey by XP revealed that 60% of investors are still unaware of open banking. Despite announcing the innovation, however, the Central Bank has not yet started its campaigns to promote the system.

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In October, the president of the Central Bank, Roberto Campos Neto, said in an interview that Pix and Open Banking „are part of the economic recovery of Brazil.