According to the Central Bank of Brazil (BCB), only 1.1% of companies with bank accounts in Brazil, which represents about 211 thousand companies, have joined Open Finance.
“With a cautious approach and proper regulation, Open Finance can become a powerful tool to drive growth and business success in all areas,” says Emanuela Ramos, vice president of Business Development at NAVA Technology for Business, specializing in technology services and solutions. “Soon, more companies will be able to enjoy these benefits, contributing to a more inclusive and efficient financial environment.”
With this growing adoption, NAVA highlights three four fundamental benefits that this system can provide:
1- Democratization of access to capital: Open Finance democratizes access to capital, traditionally reserved for large corporations with an established history. Now, companies of all sizes can access a variety of financial service providers. This allows finding the best credit options based on a more comprehensive analysis of the company’s financial situation.
2- Reduction of dependence on traditional institutions: With expanded access to a wider range of financial services and financing providers, companies can reduce their dependence on traditional institutions. This aspect is particularly beneficial for small and medium enterprises (SMEs), which often face difficulties in obtaining financing due to a lack of established history.
3- Transparency and efficiency in processes: this tool also promotes transparency and efficiency in the processes of companies. By allowing data sharing between different platforms and applications, they automate routine tasks and obtain a broader and more accurate view of their financial health. This enables cost savings, risk mitigation, and more informed and strategic decision-making.
4- Security and data privacy: ensuring the security and privacy of company data is essential. Additionally, promoting fair competition and equitable access to financial services is necessary.
