Real Project ( 2022 / 2023 )
OPEN FINANCE
INTERNAL SYSTEM
Open Banking is a set of rules and technologies that will allow the sharing of customer data and services between financial institutions through the integration of their respective systems.
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The fundamental principle of Open Banking is user consent, that is, companies must necessarily share information about a customer (whether an individual or legal entity) if they request and authorize the transmission of data to another institution.
Project´s Goal
A SaaS system will be developed for financial institutions to manage the operations and data consented by the open banking user. This will be OFIS. Open Finance Internal System
The arrival of Open Banking should bring more options for financial products and services, with less costs, as well as more transparency for end customers, who will have more autonomy over their financial lives. In practice, the customer will own their financial data and will be able to choose when and with which companies they will share it.
Open Banking
Open Banking in the World
New products and services must emerge from the development of Open Banking in the country, but always following the set of rules established for the creation of the concept.
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It is worth saying that Open Banking is not exclusive to Brazil. The United Kingdom was the pioneer, implementing a similar system in 2018, while Australia implemented the first phase of its program in July this year, for example. India has also taken the first steps towards creating its Open Banking.
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Additionally, countries like the United States, Canada and Russia are looking at ways to incorporate it into their financial systems.
Each country can adopt Open Banking according to its characteristics and allow data sharing to a certain level, but, in general, the objective of applying the new set of rules is to promote competition, efficiency and offer new products to the consumer.
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In Brazil, the sharing of registration data used to open a bank account is planned, such as: personal data (name, CPF/CNPJ, telephone number, address, etc.); transactional data (information on income, revenue in the case of companies, consumption profile, purchasing capacity, current account, among others); and data about products and services that the customer uses (information about personal loans, financing, etc.). Everything always with the user's consent.
What are the advantages of Open Banking?
Open Banking assumes that consumer data is their property and not the bank to which they are linked.
To give an example: if a customer has an account at bank A, this institution holds that customer's credit history, which indicates, for example, whether or not he is a good payer.
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But if the customer wants to apply for a loan at bank B, where he does not have an account open, he will have difficulty. This happens because bank B does not have enough data to assess the person's payment capacity to release the credit or not because it is bank A that has this information. Thus, the operation becomes more risky for bank B and it tends not to grant credit.
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The customer is then dependent on the institution with which they have an account and subject to its fees, which further encourages the already high banking concentration in the country.
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Open Banking aims to reduce this entry barrier, democratizing not only loans, but different types of financial products, so that banks, fintechs, payment institutions can share information between them and the customer has the right to choose which institution offers the best conditions for each financial service.
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In practice, it is as if Open Banking allowed the customer to build their “own bank”. The person can choose to access credit at bank A, which has the best rate, investments at brokerage B, which has low brokerage fees, and a credit card at fintech C, which has no annual fee, for example.
Dashboards and Talks
To build this system, intense research was carried out on types of dashboards and their applications.To understand the needs of system users, interviews were carried out with 20 people who already worked with administrative systems in financial institutions that will use the system.
Types of Dashboards
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Operational
This model is used to show the metrics that need to be monitored by analysts to make optimizations in their activities, so that they gain more agility in route corrections. Without crossing data from different sectors, the analyst would have to perform different operations, spending more time on their activities, which compromises their productivity.
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Financial ( our main reference )
These are those that include important information about the company's financial sector, enabling the manager and his team to assess the financial health of the business.
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Tactics
This is a panel aimed at the management team. The information provided by the resource helps in decision-making, aiming to achieve objectives in the medium term. The data made available on this panel must be controlled exclusively by professionals holding management positions.
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Strategic
It is the panel used by the board, as it helps to make decisions and determine long-term objectives. However, your information must be made available to all employees, which facilitates team engagement. Financial data, results of stipulated goals, performance of areas and the company as a whole are placed in this dashboard model.
How it works?
The API (Application Programming Interface) is the resource that will allow institutions to share information in the Open Banking ecosystem in a standardized way.
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It is worth mentioning that the API was not created for Open Banking. It is a universal element of technology, which is already widely used today in the integration of systems in different areas. Basically, it's the way all software “talks” to each other on the internet.
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To make it easier to understand, the API is a kind of bridge that connects different applications through the same language. For example, Uber uses a Google Maps API to have maps in its application, and Airbnb also uses an API to show the locations of properties available for rent.In this way, APIs will allow the exchange of customer data between institutions in an agile and secure way.
I created a prototype in version for mobile devices in figma with the main functions of what this system will be like.
The user experience: