How much time do you spend on banking apps? Marcos Alexandre Pina Cavagnoli, digital director of cash management and open finance at Itaú Unibanco, says that open finance will save Brazilian consumers time and even money.
Cavagnoli spoke on the subject at South Summit Brasil, a technology and innovation event that started this Wednesday (4th) and runs until Friday, in Porto Alegre (RS).
First, the Central Bank created open banking, which began in February 2021. In March this year, the BC replaced open banking with open finance.
Initially, open banking was an information sharing technology related to traditional banking products. The evolution to open finance made the system include data on other financial services, such as accreditation, foreign exchange, investments, insurance and pensions.
“Brazil has everything to be the most impacting open finance initiative in the world”, says Cavagnoli. Compared to other countries that have adopted similar systems, such as England, Brazil has shown a faster evolution of the system, he says.
How will it work in practice?
Cavagnoli gives two examples of how open finance can help consumers — but it’s not yet known when these features will go into effect.
The first one is when checking your bank account balance. The customer who authorizes the sharing of information will be able to see the balance of accounts he has at other institutions in a bank’s application.
“More than 80% of the time that the consumer spends on the screen of bank applications is to see the statement, check the balance and make payments. If you have a system that aggregates the balances, it gives the benefit of saving time for the customer “, says Cavagnoli.
The other example is focused on granting credit.
If the consumer has more than one type of loan, he will also be able to see them all at once. Here, according to him, there is a facility for consumers, who will be able to better organize their finances, and a business opportunity for companies that grant credit, which can use the information to offer products at more competitive rates, for example.