International Data Protection Day: how PIX, Open Finance and LGPD are transforming the digital environment in Brazil

On January 28, International Data Protection Day is celebrated, a date that reinforces the importance of ensuring security and privacy in the digital world. This is a theme that gains even more relevance with the growth of PIX, Open Finance and the use of financial applications such as PicPay, Nubank and Mercado Pago, which transform the way we relate to digital services.

PIX, for example, is already the most widespread means of payment among Brazilians. The instant payment service, created by the Central Bank (BC), is used by 76.4% of the population. Then come the debit card (69.1%) and the money (68.9%). research “O Brasileiro and its Relationship with Money”, published by BC.

Open Finance, in turn, reached 37 million consents in October 2024, with 99% of individuals, representing a growth of 35% compared to 27 million registered in the same period of 2023, according to the study “Evolution of Open Finance in Brazil”, prepared by the international consultancy BIP.  

These advances are a reflection of the growing confidence of consumers to share information in a structured and secure way. However, despite the benefits of data sharing, there are still doubts about how to do it safely in the financial market, maintaining the balance between innovation and privacy.

“It is essential that both companies and consumers understand the importance of protecting data such as name, address, financial history and consumption habits, ensuring compliance with the General Data Protection Law (LGPD)”, says Alan Mareines, Lina Open X expert and CEO.

LGPD: 58% of companies increased their investments in security

The LGPD was created to regulate the use and protection of personal data, promoting privacy and security.However, a survey pwc revealed that 58% of companies have increased their investments in information security after the implementation of the legislation.This demonstrates that, despite the compliance process being underway, there is a growing awareness of the relevance of protecting personal data.

The adequacy of Brazilian companies with the Law has advanced, but still faces significant challenges prep from Logicalis, only 36% of organizations in Brazil claim to be fully adherent to the LGPD, while 43% are in the process of implementing measures to fit the code. Notably, 6% of companies have not yet initiated specific actions for compliance.

“Adapting to the LGPD brings several challenges for companies, such as the need to review internal policies, train employees and implement new data protection technologies. These measures are essential to prevent information leaks and ensure consumer confidence”, analyzes the CEO of Lina Open X, Mareines.

For Mareines, consumers have a vital role in protecting their data.“It is essential to be aware of their rights, such as the right to access, correct and delete their data, as well as adopting good practices when sharing personal information, such as verifying the legitimacy of companies and using secure channels”, he details.

How to share data securely?

To share information securely, it is essential to adopt best practices. First of all, make sure that the websites and applications you use are reliable and employ encryption technologies. You can check this by looking at whether the address starts with “https” and whether there is a padlock icon in the navigation bar. 

Also, read privacy policies carefully to understand how your data will be collected, stored and used. Prioritize services that are transparent and clear about these practices.

Adjust privacy settings across platforms and devices to control what information is shared and with whom. Whenever possible, enable two-factor authentication (2FA) to add an extra layer of protection to your accounts.It is also important to create unique and robust passwords for each account and, if necessary, use a password manager to organize them securely.

Keep your devices and applications up to date with the latest versions of software and security fixes. Avoid using public Wi-Fi networks to transmit personal data; opt for private connections or, if necessary, use a virtual private network (VPN) to ensure a secure connection. Regularly review the permissions granted to applications on your device, authorizing only access to the information that is indispensable for its operation.

Be careful of emails, messages and links that look suspicious or ask for personal information. Always confirm the authenticity of the sender before sharing any data. 

Make frequent backups of important files to ensure you can recover them in the event of a loss or cyber attack.In certain situations, consider using solutions such as digital wallets or authentication tokens to protect sensitive data.

Finally, stay up to date on modern security and privacy practices by keeping up with new threats and vulnerabilities. “ By following these guidelines, you can more securely share information, protect privacy, and significantly reduce the risks of exposure or misuse of personal data”, Alan said.

10 Benefits of sharing your data securely

Sharing personal information can offer a number of benefits to both consumers and businesses research from Mastercard, while 60% of executives believe consumers recognize advantages in sharing their data for benefits, only 44% of users actually see value in it.

For companies, data provides valuable insights into market trends and areas for improvement, which contributes to the development of more innovative products and services. Consumers can benefit in many ways by choosing to securely share their information, such as:

1) Customized services: shared data allows companies to tailor products and services to individual consumer preferences.A practical example is streaming platforms that suggest content based on user viewing history.

2) Discounts and rewards: many companies offer perks like coupons, exclusive promotions or loyalty programs in exchange for customer information, encouraging their loyalty.

3) Improving user experience: data helps companies create more intuitive interfaces and functionality that meet user expectations, enhancing the customer journey.

4) Exclusive access: some features or advantages, such as early access to exclusive releases and events, are only available to those who choose to share their information.

5) Most relevant recommendations: based on the data, companies can suggest products and services that really meet the needs of consumers, saving time and improving the experience.

6) Improvement of products and services: feedback and usage data help companies identify failures and areas for improvement, resulting in more efficient solutions tailored to user demands.

7) Enhanced security: banks and digital services can use behavioral data to detect fraud quickly, and offer more secure and practical authentication processes.

8) Customized support: data sharing enables companies to offer more agile and effective technical support, adjusting solutions to the specific needs of each customer.

9) Advances in health and well-being: in the medical field, shared data enables more accurate diagnoses, personalized treatments and continuous monitoring, improving the quality of life of patients.

10) Incentive to innovation: ethically collected data contributes to advances in technology and artificial intelligence, generating benefits that positively impact the entire society.

“Understanding the importance of data sharing and adopting secure practices can bring numerous benefits to both consumers and businesses, promoting a safer and more efficient digital environment”, concludes Mareines.