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Brazil introduces open banking

Brazil is the latest country to embrace open banking, rolling out a new regulation enabling licensed institutions to share customer data.

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Brazil introduces open banking

Editorial

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Under the new rules, banks, payment institutions and others licensed by the Banco Central do Brasil, can share - at the customers' discretion - registration and transactional data from individuals or legal entities.

The central bank says that open banking will help digitise Brazil's financial system and reduce "information asymmetry", promoting the emergence of new market players and encouraging new business models.

The bank says the new regulations should result in the rise of comparison platforms, financial management tools and more customer-friendly payment initiation procedures.

The central bank has set out a timetable for a phased implementation, which will be complete by late next year, by when the rule will cover everything from registry information to the forwarding of loan proposals to data on foreign exchange operations.

UK-based open banking specialist Ozone is working with Brazil's TecBan to help firms take advantage of the new regime.

Says Ozone CEO Chris Michael: "As open banking charts it’s course around the world, we will continue to extend this Global Sandbox and we are excited to be working with TecBan in Brazil."

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