Brazil's central bank mandated open finance in phases starting 2021, going far beyond the UK model that inspired it. While the UK focused on current accounts, Brazil requires data sharing across investments, insurance, pensions, and foreign exchange. Payment initiation providers (ITPs) link Pix to open finance, enabling automated and scheduled payments.
The framework lets consumers share financial data across institutions, forcing competition on service quality rather than data lock-in. Banks that once hoarded customer data must now share it (with consent), allowing fintechs to offer better rates, products, and advice.
Brazil's approach is being studied by regulators globally. The combination of mandatory participation, broad scope (not just banking), and integration with an existing instant payment rail (Pix) makes it arguably the most complete open finance implementation in the world.