Optimism regarding Open Finance has grown among its enthusiasts. According to the Annual Report of Open Finance, the number of active consents reached 42 million, representing a 97% increase compared to the previous year. Of these, 27,7 million are unique consents from individuals or companies. The system recorded 1,4 billion calls for information exchange and offers a variety of products and services
For some, it is a promising scenario and there are those who believe that it will not have so many advancements.
In Brazil, about 15% of banking service users already share their data through Open Finance, while in the United Kingdom this rate is 13%. The Brazilian model, inspired by the success of British Open Banking, now stands out as the largest in the world
But there is a point we need to reflect on here, consent is just the first step and does not necessarily mean that the system is actually being adopted by the population. The adoption of a new digital product requires good experiences, ease of use and especially understanding of the benefits of open finance.
There are significant investments in the system. According to the Banking Technology survey released at this year's Febraban Tech, investments made by financial institutions could total R$ 700 million by the end of 2024. This contribution is directly linked to the expansion of the supply of products and services to customers, through the efficient and secure use of shared data
The evolution and the investments backed by data do not surprise those who follow the increasing digitalization of the financial sector in Brazil. The Brazilian population is recognized for its openness to new technologies in the banking sector, as demonstrated by the success of PIX, released in 2020, that became the most popular payment method in the country in 2023, with almost 42 billion transactions, according to Febraban
However, despite the recognized advancement of Open Finance towards mass adoption, there is a persistent perception of slowness in the adoption and the promised benefits of this system. One of the reasons for this feeling may be the comparison with PIX, whose exponential growth was facilitated by ease of use, not requiring extensive financial knowledge from its users for enrollment, unlike what happens with Open Finance
A study conducted by the Locomotiva Institute in partnership with Xpeed, financial education division of XP, reveals that 90% of respondents recognize the need for financial education. This indicates that many may not have the necessary knowledge to fully understand the benefits of sharing financial data, functionality proposed by Open Finance
Furthermore, due to the sensitive nature of consumer data and the need for a robust technological infrastructure capable of integrating complex systems and ensuring data security between financial institutions, specialists assess that, although it is already operational in some areas, the system is still in the validation phase.
Large institutions like Santander, Bank of Brazil, XP Investments, among others, they have already implemented or are testing versions of PFM (Personal Finance Management, or Personal Finance Manager, that centralizes multiple accounts in a single channel to assist consumers in managing their resources
Even with these challenges, Open Finance in Brazil is showing a gradual adoption by users, driven by significant investments from financial institutions
Although there are still challenges to overcome, how the continuous need for financial education and the complete validation of the system in various areas, the country is consolidating its position as a global leader in this new model. With initiatives like PIX paving the way for greater digitalization in the sector, the future of Open Finance in Brazil seems aligned with the needs and expectations of modern consumers
The path to the complete implementation of Open Finance and to the revolution in the financial system is long. The continuous regulatory evolution, the expansion of data sharing and the growing acceptance by the public are crucial steps in this journey.
Another major challenge of increasing adherence to Openfinance is undoubtedly the fact that information is decentralized (credit products, loans, cards, among others) and the interface with multiple banks and credit companies,increase the need for discipline and control on the part of the population.
One very important issue that we cannot fail to mention is the increasingly better journeys of digital products with improved experiences delivered by financial institutions to their clients, increasing satisfaction and consequently customer loyalty, resulting in increasingly more satisfied customers and perhaps less open to adopting open finance, which ultimately enhances the competitiveness of the sector.
In any case, the financial sector in Brazil has advanced, be it with Pix, with open finance and very soon with DREX. It is a new path, that will require new ways of thinking and building better digital products that meet each customer's pain points, putting the customer more and more at the center of the strategy and bringing healthy competitiveness to the country
