According to the Central Bank of Brazil (BCB), only 1.1% of companies with a bank account in Brazil, which represents about 211,000 companies, have adopted 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 advantages, contributing to a more inclusive and efficient financial environment.
With this membership still growing, 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 track record. 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- Reducing dependence on traditional institutions:With expanded access to a broader range of financial services and lenders, companies can reduce their dependence on traditional institutions. This aspect is particularly beneficial for small and medium-sized enterprises (SMEs), which often face difficulties obtaining financing due to a lack of an established track record.
3- Transparency and efficiency in processes:This tool also promotes transparency and efficiency in company processes. By enabling data sharing between different platforms and applications, they automate routine tasks and gain a broader and more accurate view of their financial health. This enables cost savings, risk mitigation, and more informed and strategic decision-making.
4- Data security and privacy:Ensuring the security and privacy of companies' data is essential. Furthermore, it is necessary to promote fair competition and equitable access to financial services.
