Overview of the Brazilian Fintech Regulation and the paths towards Open Banking

Investment in Brazilian Fintech companies is growing rapidly. It has increased from $52 million in 2015 to $375 million in 2018, and almost tripling in 2019, reaching $1.6 billion.

The efforts adopted by the Central Bank towards the adoption of open banking will increase market opportunities for e-banking, e-commerce, and attract millions of new users for the financial system. With a total population of 210 million, Brazil has over 45 million unbanked adults.

• Brazil’s Central Bank, or BACEN, regulates Fintech. In 2018, the Central Bank allowed Fintechs to grant credit without the intermediation of a bank. The new regulation also provided for the control of credit Fintechs by investment funds.
• In November 2019, the Central Bank published draft rules or the regulation of open banking in Brazil. The Brazilian open banking model is still under review, with input and support from the Brazilian Association of Fintechs (ABFintechs). The rules, which will be introduced in phases started in the second half of 2020, will make changes to the way that financial institutions and banks share transactional data. This will allow Fintechs to obtain new customers with a better offering of less expensive financial services and products, while offering better security to banks and consumers.

Learn about upcoming business opportunities in the sector, understand the latest developments in the regulatory environment, and learn about tools and resources to support your company’s market entry to Brazil directly from these experts:

• Jonathan Ward, Commercial Officer, U.S. Commercial Service São Paulo, Brazil
• Marcelo Carrullo, Partner, Drummond Advisors
• Ingrid Barth, Founder and COO, Linker Bank, and Executive Director, Brazilian Association of Fintechs (ABFintechs)
• Bruno Diniz, Managing Partner, Spiralem, and Head of the Fintech Committee of the Brazilian Startups Association (ABStartups)
• Bruno Drummond, Executive Director, Drummond Ventures