Financial Services Advisor

Peter Baumgaertner, partner at Holland & Knight LLP: “Open banking in Brazil has begun to move forward in a deliberate manner; accordingly, the impact on customers and the emergence of business models by banks are still forthcoming. In other words, open banking should be viewed as a medium- to long-term undertaking. Even though Covid delayed Brazil’s open banking rollout, its progress has surpassed other countries in Latin America. The growth of open banking has been partly fueled by the accelerated growth and interest in the fintech sector. Fintech companies, such as Nubank (which recently completed an IPO that raised approximately $2.6 billion) offer a digital platform that supports customers who do not have access to a physical bank branch. As fintechs reach consumers that the traditional branch banking sector does not, digital participants have created opportunities for collaboration among APIs, traditional banks and fintech organizations…”