BRAZIL Trends and Developments Contributed by: Thomas Gibello Gatti Magalhães, André Dágola Brostoline and Luisa Grespan Danhoni Neves, Magalhães & Zettel
Open finance and banking as a service Moreover, BCB has established “open banking” in Brazil, which is in the process of phased imple - mentation. In a joint initiative with the Brazilian Securities and Exchange Commission (a body that regulates the capital market in Brazil), the so-called “Open Finance” is being implemented, in which a user individual not only has access to all financial institutions in which they have an account and/or balances in a single applica - tion, but also has access to their investments in funds, stock exchanges and even public bonds, promoting a greater openness and interoperabil - ity between financial and capital service provid - ers, enabling users to share their data between the various financial institutions and market ser - vice providers. Through this huge set of disruptive innovations that Brazilian regulators have been applying in the financial ecosystem, enormous opportuni - ties arise for the creation of entities that pro - vide financial services and means of payment in an unconventional and innovative way. The Brazilian regulator follows these innovations very closely, aiming to protect the financial market and the economy. Combined with this regulatory progress in the payments ecosystem, the Brazilian population has become “banked” and digitalised. Much of this banking and digitisation comes from com - panies called “digital banks”, which, in fact, are white label of Banking as a Service (BaaS) pro - vided by traditional financial institutions and duly regulated by BCB. BaaS is the provision of financial services by financial institutions for non-financial companies to offer financial products and services. Briefly, it is the outsourcing of the provision of banking services.
• payment between companies; • payment of revenues from government enti - ties (taxes, fees, court costs, passport issu - ance); • collection from third parties; • payment of telecommunications services and utilities (water supply, electricity, gas, etc); and • payment of social security and insurance contributions. After the effective establishment of PIX, most financial transactions in Brazil are basically car - ried out with a mobile device, internet access and the app of the banking institution. Further - more, this already sophisticated system goes through a continuous process of improvement and evolution. BCB is developing automatic payment by PIX, and PIX withdrawal is already being implemented; with this modality, which is called PIX withdrawal, the user does not need to go to an ATM or bank branch to make a with - drawal of amounts in paper money, but can go, for example, to a local store and make the with - drawal of paper money after the instant elec - tronic transfer to the store. This type of transac - tion has been observed with caution by large credit card operators since it constitutes a form of competition to their transactions. According to BCB, in its Integrated Report (RIG2023) published in 2024 regarding 2023, PIX handled more than BRL17 trillion in 42 bil - lion transactions. In that period, there were more than 698 million active PIX keys and, since its launching, 149 million people and 14.9 million companies have already used PIX. It is notewor - thy that Brazil has a population of approximately 210 million people.
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