Open Banking in Brazil

Brazil has built one of the most comprehensive and rapidly scaling open finance ecosystems in the world. Led by the Banco Central do Brasil (BCB), the initiative was established through Resolução Conjunta BCB/CMN Nº 1/2020 and launched in phases beginning in 2021. What started as "Open Banking Brasil" was rebranded to "Open Finance Brasil" to reflect its expansion beyond traditional banking products.

The implementation followed a four-phase approach. Phase 1 introduced standardized product data APIs for banks and financial institutions. Phase 2 enabled customer data sharing with consent. Phase 3 was a landmark moment, integrating payment initiation with Brazil's wildly successful instant payment system, Pix. Phase 4 extended the scope to insurance, investments, pension funds, and foreign exchange, making Brazil's framework one of the broadest in terms of product coverage.

By 2023, the ecosystem included over 800 participating institutions, from major banks like Itaú, Bradesco, and Banco do Brasil to fintechs and smaller cooperatives. The system had processed over 30 million active consents, demonstrating significant consumer adoption. The integration with Pix has been particularly transformative, enabling instant payment initiation from within third-party applications.

Brazil's technical standards are built on FAPI 1.0 Advanced with a Brazilian security profile, ensuring high security for API communications. The governance model includes a deliberative council with representation from participating institutions, and technical working groups that continuously evolve the API specifications.

The Brazilian model is notable for its mandatory participation requirement, which compels all regulated financial institutions above certain thresholds to join the ecosystem. This regulatory push, combined with the Pix integration and broad product scope, has created a vibrant ecosystem that serves as a reference model for other Latin American countries developing their own open finance frameworks.