Open Banking goes beyond banking services

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In recent days, the Open Financial System, better known as Open Banking, has been increasingly debated among people and disseminated by the media. This is because the first phase of implementation of the system in Brazil started last Monday (01) and has the ambitious goal of revolutionizing the financial market in the country.

Much has been discussed about the benefits of the system that allows the sharing of customer data and services between financial institutions. However, contrary to what is imagined, Open Banking can have other applications besides the most practical and transparent banking services.

In addition to banking services

At first, it may seem that Open Banking is geared only to the financial area, but the system can go much further. The concept is based on the opening of options for the consumer, allowing him to have more freedom to take financial information wherever he sees fit. And how will this work in practice?

According to the general manager of the Spanish startup Belvo, Albert Morales, Open Banking may impact different areas at the same time. The company allows application developers to access data from their end users through an API linked to hundreds of banking and non-banking sources. Fintech arrived in Brazil in 2020.

All user registration information can only be shared between participating institutions authorized and supervised by the Central Bank (Source: Pedro Ladeira / AFP)
Source: Pedro Ladeira / AFP

Customization

In addition to more transparent financial services, one of the main benefits of Open Banking for the public is the provision of personalized services. According to Morales, by having access to his bank account information, credit card bill and loans, a company is able to personalize the offer of products and services for each person.

An example: imagine that you are looking for a house to rent. When entering rental applications, you need to make a filter covering only properties with values ‚Äč‚Äčaccessible to your pocket. Thus, if there is permission to use your account data, the application will pull information such as the amount of your income and fixed expenses over the months, and will offer the best properties according to your activities.

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