The Brazilian Open Finance has gained access to Smart Transfer to optimise adherence to the data-sharing system between FIs created by the Central Bank. Following this announcement, financial institutions and banks have until the end of April 2024 in order to adapt to the functionality that will integrate payment initiation.

In addition, the Smart Transfer solution was designed by executives in the financial sector, and is expected to optimise adherence to the data-sharing system between financing institutions that were created by the Central Bank (BC). More information on the announcement The new solution is expected to provide customers and clients with the possibility to make automatic transfers via Pix with a single authorisation by using triggers for this to occur. The procedure is set to take place through payment initiation, part of phase 3 of Open Finance.

Initially, the overall functionality will be restricted to accounts of the same ownership – CPF or CNPJ, but with the possibility that there is already an expectation of expansion, in the future, to any other recipient. For example, in the case of an account that has gone into overdraft by the customer having money in another bank of fintech, the client can leverage Smart Transfer in order to move resources automatically whenever this takes place. At the same time, users will be enabled to save money every month in a certain financial application, which will leave the task of migrating the value from one account to another on an automated process.

The offer of this functionality is set to depend, however, on the strategy of each institution that will request access to Smart Transfer. One important digital bank in Brazil, Mercado Pago, was the first institution to put payment transaction initiation (ITP) services into operation. Currently, the bank has 4.5 million active consents in Open Finance, which represents approximately 10% of the more than 43 million in the ecosystem as a whole.

Another use case of the solution is represented by salary portability. If the institution has the client’s data and it knows that they receive it at a certain enterprise, the tool will only need to ask for authorisation to bring the resources and for clients to have access to all the benefits that the service can offer. In addition, Smart Transfer will provide benefits for personal financial managers (PFMs), including the possibility for them to regain space.

The tools will not only allow the visualisation of revenues and expenses, but it will also be able to carry out movements, with the customer’s consent. Furthermore, by having a PFM, institutions will be enabled to connect and consolidate client accounts and maintain the relationship channel. This process will enable clients to move the money in a single interface, where they will also be allowed to manage their finances in a more secure and efficient manner.

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