Open Finance: the power of choice in your hands
The financial market is becoming increasingly flexible in the face of the new technological and behavioral trends of modernity. The restless, restless and accelerated pace of what we now know as the Age of Agility, configures a market scenario potentially aimed at autonomy and customer satisfaction.
It is in this context that the system emerges Open Finance: a model that returns ownership of your personal data. Confused? Let's explain!
Translated from English, Open Finance it's nothing more than “Open Finance”. This is because, in the old model, your data was restricted exclusively to a bank; it was not allowed to share financial history, account transactions, balance, social security number or name with other institutions. This restriction ended up limiting practicality and even the prospect of new business models.
In this way, the emergence of Open Financeand came to make this rule more flexible, allowing the sharing of this data with institutions authorized by the user - that is, nothing will be done without thoroughly procedural authentication and permission from the customer.
How does this model impact the financial market?
O Open Finance promises a true revolution in the market, since it proposes an ecosystem very similar to that of Pix: automated processes, flexibility, autonomy and customer experience - synonymous with the intervention of technology in the non-corporate routine.
So much Pix, when it comes to programs like Bacen's Sandbox And the Open Finance, constitute an extremely favorable scenario for the emergence of new businesses.
In practice, the system Open Finance communicates with other institutions through an API (calm down, let's get there), which allows encrypted integration between platforms. Precisely for this reason, it is possible to share your data with other financial systems (that participate in this ecosystem), such as pension funds, brokerage firms, exchange companies, etc.
This level of integration and communicability results, little by little, in a kind of digital identity: and that's why Open Finance, potentially, could change everything. The financial market converges a series of tools and models that, when linked together, open space for new ventures, new market spheres, and new synonyms in e-commerce current.
Thus, a user who today operates through Open Finance you have the flexibility to transfer to several banks with only one history and adhere to more advantageous rates, without the need to start everything from scratch.
O Open Finance is it reliable?
Yes, after all, any institution that adheres to this model must be regulated by the Central Bank. In addition, we have the most modern technology on the market to our advantage!
The API used, Application Programming Interface, or Application Programming Interface, is nothing more than a tool that promotes, in a strictly secure way, an integration between two software.
This integration is like a mirror, that is, if you have a website, you can integrate it with a partner's site: from there, direct interaction of your site with your partner's platform and vice versa is possible.
This is the case with financial institution applications and software: through an API, the two platforms communicate, exchanging the respective permitted information. This is how your data can be used in more than one bank.
The customer decides...
In addition, it is the customer who defines which financial institutions will have access to their data. This occurs through authentications, in which they validate the veracity of the user's identity.
Based on this strategy, certain online transactions become even more secure than manual transactions, such as contracts and signatures.
In addition, there is LGPD - General Data Protection Law, No. 13,709/2018, which guarantees the transparency and integrity of each stage of Open Finance. Together with it, the system is still supported by Supplementary Law No. 105/2001 of Bank Secrecy, whose validity prohibits the sharing of data with institutions or companies that do not operate with Open Finance.
Your data will expire after the current deadline
For any type of bank, financial institution, or authorized company, the Central Bank stipulates a time limit for your data to remain visible.
Autonomy has never been so attractive
It is not new that innovations in the financial sector always emerge with the intention of making the market more flexible, stimulating competition and portfolio and business diversification, and, as a result, standing out against the global economy. But what benefits does this scenario translate to the marketing sphere, users, and investors? Check it out here:
- Do it yourself!
O Open Finance allows you to develop a more relationship Assertive, Objective and mindful with their own investments and money. The bank ceases to be the protagonist, so that the client has greater control over their own procedures and plans, without depending on excessive bureaucracy and waste of time.
- New products, new solutions and new businesses
With the new disruptive system, automated and snapshot, there are innovative margins for various solutions based on the financial sphere.
This scenario, driven by creative technology, has the potential to enrich the national framework, revolutionize the financial market, return autonomy and promote independence from the customer himself. Does it sound impossible? It's already happening and you, of course, are already taking advantage of these new tools/models.
- Easy to find more advantageous conditions
O Open Finance proposes an additive assessment to traditional models, such as Scoring, which provides a scenario of your financial profile. Thus, it facilitates the assessment of banks and companies regarding the credit that will be granted.
Attached to Open Finance, this view becomes even broader, since it's not just the score of your Scoring to be taken into account and yes, your behavior, regularity of the transactions, financial health and even the level of profitability.
This scenario is even more favorable when it comes to collecting the loan. Based on the assessments, it is possible to define what the borrower's chances are, in fact, to bear the debt. From then on, it is compared history, financial commitment and income to avoid friction and annoying debts.
In addition, the financial market gains new diagnostic metrics - since this basis allows us to observe the user behavior, trends and variations of the market, in addition to ending up with asterisks in the footer and bureaucracy. Have you thought?
Who is part of this movement?
Institutions that carry out international activities or that are equal to or greater than 10% of GDP are compulsorily included in Open Finance.
In addition, those with a size of 1% to 10% of GDP are also mandatory. Then, we can mention: Caixa EconÔmica, Citibank, Santander, Bradesco, Credit Suisse, BNDS and Bank of Brazil, for example!
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