OPEN BANKING

IMPACTS AND CHALLENGES IN THE FINANCIAL MARKET

Abstract

This article seeks to analyze the challenges that banks have been facing with the advancement of digital technologies, which have given rise to the main idea of ​​Open Banking in the financial landscape, which is being applied in many institutions looking for ways to create more innovative and flexible services. Open Banking is a differently functioning business model, whereby the economic agent becomes more focused on its critical processes, releasing based interfaces on Application Programming Interfaces (APIs), so that other companies can create applications that aggregate value to business services. Thus, banks can focus on their primary service while application development or integration becomes the responsibility of a server community. As a result, technologies once again change the relationship between consumers and financial institutions and modify dynamics of competition. The Central Bank of Brazil, in turn, as a regulatory agent, should act, either in coordinating the matter or in regulating the impact of financial activities carried out in accordance with its guidelines. On the other hand, Administrative Council for Economic Defense (CADE), as competition authority, faces and decides on competition issues arising from this new reality in the financial system.