- It has been 4 years since the implementation of Open Banking in Brazil, and it is now the largest ecosystem in the world.
- Over the past year, the growth has been significant: it went from 43 million in January 2024 to 62 million in January 2025.
The implementation of Open Banking in Brazil has achieved significant growth, becoming one of the most advanced and successful ecosystems globally. Every time we interview industry leaders and ask which country has a financial regulatory framework worth emulating, the answer is unanimous: Brazil.
According to a report by the Federation of Banks of Brazil, after four years of operation, the open financial ecosystem now has 62 million active consents and 2.3 billion successful transactions per week.
Driving innovation and competitiveness
Open Banking has created a more competitive market by allowing companies from various sectors to securely and standardized access financial data through APIs.
With an investment of R$ 2 billion from the institutions represented by the Brazilian Federation of Banks (Febraban), the financial ecosystem has been strengthened, offering opportunities for fintech startups, banks, and traditional companies.
Access to real-time financial information is driving innovative business models, such as automated payment solutions and treasury management optimization. Companies from various sectors can benefit by integrating financial services directly into their platforms, reducing costs and improving user experience.
Operational efficiency and resource optimization
One of the main advantages of Open Banking is the automation of financial processes. The implementation of functionalities like recurring payments and scheduled transfers allows businesses to manage their cash flow more efficiently. Additionally, credit portability simplifies the process of obtaining financing, encouraging competition among financial institutions and offering better conditions for businesses. Since April 2024, customers can schedule automatic transfers between their accounts in different institutions. For example, they can avoid overdrafts at one bank by transferring funds from another account with available balance.
Open Finance is also revolutionizing risk management. Thanks to access to more detailed financial data, companies can assess their clients’ and suppliers’ creditworthiness more accurately, minimizing default risks and optimizing their credit and collection strategies.
Regulation and security
Brazil has followed a robust regulatory model, with the Central Bank of Brazil ensuring security and transparency in data exchange. This approach has been crucial to the adoption of Open Banking, building trust among both consumers and businesses.
Unlike other countries where adoption has been slower, Brazil has achieved rapid and effective integration thanks to Pix, its instant payment system.
The combination of Open Banking and Pix has allowed for greater interoperability and efficiency in business payments, driving the digitalization of the financial sector.
The future of Open Banking in Brazil
In January of this year, the Board of Directors of the Open Finance Association of Brazil appointed Ana Carla Abrão as Chairperson, who has extensive experience in the financial sector, where she has worked for over 20 years. She also has a strong background in the public sector, with experience at the Central Bank of Brazil. Under the leadership of this economist, further expansion of the ecosystem is expected. Some of the main innovations expected include:
Automatic pix
It will facilitate scheduled payments without the need for manual authentication. Similar to automatic debit, it will allow customers to authorize recurring debits for bill payments (e.g., streaming subscriptions, utility bills).
Credit portability
Greater flexibility in transferring credit between financial institutions. Initially planned for unsecured personal credit, it will allow institutions to offer credit portability with a more digital experience, leveraging Open Finance data to improve information transfer. The current credit portability process will still exist, but the Open Finance-based model will serve as an additional option for customers.
Seamless journey
With a link between their device, the ITP, and their bank, customers will be able to authorize debits on their accounts up to a certain amount without the need to authenticate at their bank for each payment request (e.g., food delivery service payments).
The expansion of Open Banking to Open Finance, which will include products such as insurance, investments, and pensions, will open new opportunities for the business sector. Financial digitalization will continue to transform the way businesses manage their resources, improving efficiency and the competitiveness of the Brazilian market.
Open Banking in Brazil is redefining the financial landscape for businesses, offering greater transparency, efficiency, and access to innovative services. Its evolution into an Open Finance ecosystem will solidify Brazil as a leader in financial integration, benefiting both financial institutions and businesses across various sectors. With robust regulation and advanced technological infrastructure, the future of Open Banking in Brazil promises to continue driving innovation and economic growth.