According to the Brazilian Central Bank (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 business growth and 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 take advantage of these advantages, contributing to a more inclusive and efficient financial environment.”
With this membership still growing, NAVA highlights three four key 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 track record. Now companies of all sizes can access a variety of financial service providers.This allows you to find the best credit options based on a more complete analysis of the financial situation of the company.
2-Reduction of dependence on traditional institutions: with expanded access to a wider range of financial services and financing providers, businesses can reduce their reliance on traditional institutions. This aspect is particularly beneficial for small and medium-sized enterprises (SMEs), which often face difficulties in obtaining funding due to a lack of established track record.
3- Transparency and efficiency in processes: this tool also promotes transparency and efficiency in business processes.By enabling data sharing between different platforms and applications, they automate routine tasks and gain a more comprehensive and 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 business data is essential.In addition, fair competition and equitable access to financial services must be promoted.
