Open Finance: which data do you share when you authorize a connection?
In Open Finance, you decide which data to share, with whom, for what and for how long.
Open Finance lets clients of financial institutions share their data with other authorized institutions, to get offers, compare products or gather information in one place. This text covers the Brazilian model and is informational; rules may change, so confirm the current conditions with the Central Bank and your institution.
Scenarios
- Gathering accounts in one app. Seeing balances and transactions from different banks in one place.
- Comparing credit offers. Receiving proposals based on your history.
- Easing a sign-up. Sharing registration data instead of filling everything in again.
- Initiating payments. Authorizing payments from another institution.
Which data can be shared
Depending on the consent, it may include registration data, account information, card information, credit operations and transactions. Each authorization states which types of data, for what purpose and for how long. Consent belongs to the client, who may choose not to authorize and, if they do, can revoke it later.
Criteria for deciding
- Who will receive it? Confirm the institution's name and whether it is authorized.
- Which data? Read what is being requested and whether it fits the purpose.
- For what purpose? The use must be clear.
- For how long? Check the authorization period.
- How to revoke? Know where to cancel.
- Real benefit. Assess what you gain in return.
Strengths and limits
The strengths include comparing products with more information, centralizing your financial view and simplifying sign-ups. The risks involve sharing sensitive data with someone untrustworthy, scams that imitate authorization flows and forgotten authorizations. Open Finance is not mandatory, and refusing does not prevent use of the bank's basic services.
A simple decision matrix
Authorize if you recognize the institution, understand the purpose, the data requested fit, the period is acceptable and there is a clear benefit. Decline or wait if any of these points is unclear. Never authorize through a link received from a stranger.
After authorizing
Review active authorizations periodically and cancel those you no longer use. In case of a scam, notify your bank immediately.
