In recent months, much has been said about this system financial open, which allows the sharing of data between financial institutions: the Open Banking. However, other names are emerging within this same “Open” package, such as Open Insurance, Open Finance and even Open Investments.

But, after all, what is this Open ecosystem?

Open is an English word meaning 'open' and was the chosen nomenclature for an ecosystem that started in the UK.


In 2015, the European Parliament adopted the so-called Payment Services Directive (or just PSD), which established guidelines for data sharing between banks in support of innovation in services and payments.

A little less than a year later, in 2016, the local markets regulatory authority (the Competition and Markets Authority) issued a decision in favor of this new guideline, causing local banks to adapt to the rules that effectively came into force only in 2018.

Around here, the same movement began to show up only in 2019, at the initiative of the Central Bank (BC), which led the construction of Open Banking – the first step towards this open ecosystem.

The open system aims to bring innovation to the Brazilian financial system, promote competition, and improve the supply of financial products and services.

It is important to emphasize that the method follows the principles ofa General Law on Data Protection (LGPD), in force since 2020. In this sense, consumers are free to choose whether or not they want to share their data with the institutions participating in the system.

In summary: the personal data of customers are only shared if the customer himself authorizes the sharing.

Black background image shows some stacked cubes, each with a letter, forming the word open banking
Open Package: Understand the difference between Open Banking, Open Insurance and Open Finance. Credit: Shutterstock

And what is the difference between Open Banking, Open Insurance and Open Finance?

To keep the sharing of information organized, Open Banking ended up unfolding into other facets, by sectors – each with its own purpose of operation.

For example: Open Banking provides for the sharing of data between financial institutions, that is, traditional banks and fintechs authorized by BC.

The Open Insurance (English, 'insurance') is related to the insurance and pension market. In other words, data is shared in this specific insurance ecosystem, seeking benefits and offers for that purpose.

The head of this insurance project is the Superintendency of Private Insurance (Susep). The objective, of course, is also to modernize and simplify the insurance market.

To understand even more about Insurance, please click here.

Both Open Banking and Open Insurance (and other related nomenclatures that should gain traction soon, such as Open Investments, which covers the investment market) are part of a larger project being implemented in Brazil that has been renamed Open Finance – that is, it is the broadest form of all these divisions.

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Open Banking Implementation

Open Banking started to implement on August 13 this year the second phase of the project, which has a total of 4 phases. In the case of Open Insurance, there will be three phases, with the first scheduled to start on December 15, 2021.

Open Investments should be part of phase 4 of Open Banking, which is scheduled to start in December as well.

To understand more about how data cross-checking works and how it makes life easier for the end consumer, please click here. You can also check here the Open Banking implementation schedule in Brazil.

Credit Main Image: atk work/Shutterstock

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