Open banking is revolutionizing the market and poised to transform Brazil's financial system, but in order to implement this system, there are a number of factors that Fintechs, banks and other financial institutions need to understand and adapt.
Armed with extensive experience in open banking initiatives in Europe and Asia, Axway (Euronext: AXW. PA), a leading enterprise integration provider, launched the "Axway Open Banking Program" in Brazil at the end of 2020. Nine companies are currently participating in the pilot initiative, including Brazilian bank Tribanco.
Axway’s open banking solution is built on its Amplify API Management platform, with technology that combines various tools to perform the necessary integrations between different partners’ systems. Amplify offers data governance and consent management, as well as security and privacy that fulfill the requirements of Brazil’s General Data Protection Act (LGPD) and standards defined by the Central Bank (BC).
"The platform meets all of open banking’s security requirements, and also offers consent management, which is a key function in open banking to allow customers to share their financial data," explains Claudio Maia, Digital Integration and Transformation Solutions Specialist at Axway.
One of the creators of the program is Eyal Sivan, Head of Open Banking at Axway and a global industry reference with his popular podcast, Mr. Open Banking. "Open banking presents a great business opportunity for companies in the Brazilian financial sector, and Axway is ready to help them achieve the digital transformation needed to explore these possibilities. We designed the program to make sure we hit the mark and are really offering a complete and valuable solution for the Brazilian market," said Sivan.
Throughout the implementation of the program, which can last from 30 to 90 days, customers go through several steps, such as:
• ·Defining priorities and particularities of the client, with continuous feedback to ensure the solution meets their needs;
• Providing a test environment for companies to evaluate and become familiar with the technology;
• Offering communication with global experts in integration technology and open banking;
• Participants can purchase the solution at the end of the process, but some have already chosen to deploy the system before the end of the program;
Unlike other offerings on the market, Axway's technology is open, adaptable, and can even integrate with competitors’ tools that customers already own.
Based on UK standards, the solution is already configured to meet Brazil’s open banking standards, allowing customers to focus on exploring new business possibilities. For example, with open banking, banking institutions will be able to offer services to other partners and vice versa, expanding the range of business.
Tribanco invests in digital transformation to explore open banking opportunities
While some institutions are still focused on complying with the Central Bank's regulatory requirements, Tribanco is already exploring the opportunities that open banking offers. As a participant in the Axway Open Banking Program, the company intends to participate in all phases established by the Central Bank for the implementation of the system, even though it is only required - due to the type of institution - to start from the third stage.
Faced with the challenges of systems integration, security, consent management, and regulatory compliance, the company sought a complete and reliable solution. "We decided to look for an accelerator in the market, so that we didn't have to implement all of this infrastructure on our own. After evaluating several partners, we identified Axway as the most robust and mature platform," explains Leonardo Pereira, Tribanco Solutions Architect.
The bank, a member of the Martins Group, specializes in offering credit solutions to small and medium retail customers, and sees a unique potential to increase customer acquisition through its digital channels, among other diverse opportunities being explored. "The sky is the limit for creating new products and services. Open banking is really facilitating the customer experience with financial institutions. And the institution needs to act as a client partner," concludes Pedro Vilela, Product Owner of Open Banking at Tribanco.