The way Brazilians relate to money is going through a promising transformation, with Open Finance playing a central role. As digital solutions become embedded in daily life, financial control is no longer limited to checking balances. Instead, it involves conscious decision-making based on real-time data.
More than a trend, Open Finance is changing how people budget, borrow, and interact with financial services. By enabling information to flow between platforms securely, it opens the door to more competitive offers and relevant services. In Brazil, this movement is strengthening financial inclusion and helping people take control of their money with greater confidence.
What is open finance and why it matters
Open Finance allows individuals to share their financial data with authorised institutions beyond traditional banking. This includes accounts, investments, credit and even insurance. By consolidating this information into a single view, people gain better understanding of their finances and can make more informed choices about the services they use.
The user becomes the centre of the financial experience. Instead of dealing with fragmented systems, Brazilians can access more accurate advice and offers that reflect their real financial habits. With this model, Open Finance marks a turning point in transparency and control, making the market more responsive to personal needs.
Key benefits of open finance for Brazilian consumers
One of the main advantages of Open Finance is that it allows financial products to be personalised. Institutions can analyse complete profiles instead of relying solely on limited banking data. This results in better loan conditions, customised investments and smarter savings tools that align with user goals.
By unifying financial data, Open Finance also eliminates bureaucratic hurdles. People can apply for credit or new services without repeating documents or explanations. The process becomes simpler, faster, and more consistent, saving time while maintaining privacy and security.
More inclusive credit analysis
Many Brazilians have no access to formal credit because they lack a stable income or a conventional banking history. Open Finance changes this by allowing institutions to evaluate a wider range of behaviours—such as utility payments, transfers and wallet activity—to determine creditworthiness.
This opens new doors for freelancers, informal workers, and self-employed individuals. By making financial behaviour visible in new ways, Open Finance gives these groups a chance to participate more fully in the financial system, receiving fairer evaluations and offers.
Improved budgeting and financial planning
Having all your finances in one place helps identify spending habits and adjust them. With Open Finance, platforms can offer real-time dashboards that gather data from multiple banks and cards. Users can see their income, expenses, and savings in a clear and organised way.
These insights go beyond simple tracking. Some apps provide tips or warnings based on goals, helping people plan their finances more effectively. This makes it easier to save, avoid debt and prepare for the future, all from a single, easy-to-use interface.
The role of fintechs in driving open finance adoption
Fintechs are key players in making Open Finance accessible in Brazil. Their services are often more user-friendly than those of traditional banks, attracting people who seek agility and personalisation. These platforms are designed to simplify decisions and offer experiences that are aligned with everyday digital habits.
By bringing together different financial tools—such as payments, investments and budgeting—into one ecosystem, fintechs help users take full advantage of Open Finance. This integration allows people to manage their money with more autonomy and fewer barriers.
Traditional banks vs fintechs: a comparison
| Recurso | Bancos tradicionais | Fintechs com open finance |
|---|---|---|
| Personalização | Limitada | Elevada |
| Integração de dados | Restrita | Abrangente |
| Velocidade de inovação | Lenta | Alta |
| Acesso para não bancarizados | Reduzido | Amplo |
| Custo dos serviços | Geralmente maior | Frequentemente menor |
Although traditional banks are adapting to Open Finance, fintechs lead the movement with agility and simplicity. Their strength lies in offering practical and inclusive solutions that meet users where they are—both digitally and financially.
Regulation and security standards
The Central Bank of Brazil oversees Open Finance to ensure it is secure and transparent. Users must give clear consent to share data, and all exchanges are protected by encrypted systems and robust authentication layers, which guarantees safety and trust.
People can also manage or cancel permissions at any time. This transparency reinforces the idea that financial evolution must respect users’ rights and preferences, putting them in control of their own information throughout the process.
Challenges and barriers to adoption
Despite its potential, many Brazilians are still unaware of what Open Finance offers. Lack of information or access to digital tools can delay adoption, especially among older adults or low-income groups. This gap must be addressed through educational efforts and simple, clear communication.
Institutions and fintechs should work together to create content and interfaces that explain how Open Finance works, how it benefits people, and how to use it safely. Showing that it’s for everyone—not just tech-savvy users—is crucial to building trust and participation.
Trust and digital literacy
Security concerns are still a barrier for some users. Many fear losing control over their information or being exposed to fraud. Transparent language and practical explanations help ease these fears and show that Open Finance is safe and user-driven.
At the same time, promoting digital literacy is essential. People need to learn how to use apps, understand financial terms, and interpret the data presented to them. With guidance and support, users can navigate these tools confidently and independently.
Infrastructure and integration
Some institutions still operate on outdated systems that make it hard to integrate with Open Finance. Modernising infrastructure and adopting shared data standards require time and investment. This can delay full participation by smaller banks or companies.
However, this investment pays off. As more players embrace the model, the entire ecosystem becomes more connected and efficient. A robust infrastructure will be essential for scaling Open Finance across Brazil in a sustainable way.
What the future holds for open finance in Brazil
Open Finance is expected to become the new standard for financial services in Brazil. People will look for platforms that offer control, customisation, and proactive insights, all in a single, integrated space. The focus will shift from reaction to prevention and strategy.
Technologies such as AI will enhance the experience even more. Platforms will suggest actions, highlight risks, and deliver financial tips before users even realise they need them. Planning and decision-making will feel natural, not overwhelming.
Potential for broader inclusion
Millions of people still live outside the formal financial system. Open Finance can help include them by making invisible behaviours—like phone top-ups or rent payments—visible to institutions. This visibility is essential to expanding access to credit and services.
For informal workers, micro-entrepreneurs and underserved communities, this model opens real opportunities. It values diverse financial patterns and helps reduce inequalities, creating more paths toward stability and prosperity.
