Is Open Banking Living Up to its Promises in Brazil?
Corporate Services attorney Peter Baumgaertner was interviewed by Financial Services Advisor, a publication of The Dialogue's Latin America Advisor, about Brazil's open banking policies. With consumers’ consent, the new regulations in the country require banks to share their clients’ information with competitors such as financial services start-ups. The open banking policies are designed to bring down
high borrowing costs in Brazil by increasing competition. Mr. Baumgaertner said the country is moving forward in a deliberate manner. He stated that the impact on customers and the emergence of business models by banks are still forthcoming.
"In other words, open banking should be viewed as a medium- to long-term undertaking. Even though COVID delayed Brazil’s open banking rollout, its progress has surpassed other countries in Latin America," he said. "The growth of open banking has been partly fueled by the accelerated growth and interest in the fintech sector"