This article is about Technology

From Open Banking to Open Finance: How is security in the new data era?


Published at
18 de January de 2023

Understand how companies in the financial sector must guarantee the security of users when using the new system

The global financial market is in constant transformation. But the changes that have been taking place in operations in recent years can be seen as true revolutions that affect this segment's entire scenario and rules.

Today, it's all about data. And the emergence of the Open Banking system in mid-2016 in Europe only confirms this new trend.

In Brazil, the Central Bank began implementing the system in early 2021. And the changes didn't stop there: the concept evolved into a system encompassing much more than just banks.

Given this scenario, the impact occurs not only in how institutions develop their services and offer but also in the technological development necessary for all of this to happen in an agile and safe way.

In this article, you will understand the difference between Open Banking and Open Finance, the benefits for companies and users, and the challenges involving digital security and data protection.

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Open Banking or Open Finance?

Open Finance is nothing more than an expansion of Open Banking. An open, free, secure financial system for sharing data that, in addition to working for banks, also includes the entire financial ecosystem, such as brokerages, insurance companies, exchange companies, and pension funds.

Thus, Open Finance includes Open Banking, Open Insurance processes, among others.

The objective is to democratize different financial products so companies can share information. The customer has the right to choose which institution offers the best conditions for each service.

For the president of the Central Bank, Roberto Campos Neto, Open Finance is a project that democratizes the data industry, allowing for economic growth.

In practice, Open Finance will go far beyond banks. The model works as a kind of data network between financial institutions. With the user's approval, it can integrate the entire chain of products and services, such as retail and consumer goods.

What are the benefits of this new model?

In this context, Open Finance benefits both users and companies. Check out some of them below:

For the user

1. Accessibility

Open Finance users can access financial services and information about their economic history through an intuitive and easy-to-use interface.

2. Transparency

Users can fully access and understand their financial data by providing detailed reports and charts.

3. Time-saving

Open Finance provides users with tools to automate financial processes, reducing the need for daily monitoring.

4. Cost savings

Users can access low-cost financial products such as loans and investments cheaper than traditional banks.

For companies

1. Increased efficiency

Open Finance allows companies to manage their financial processes more efficiently, and this means they can reduce operating costs, speed up decision-making and gain greater control over their spending.

2. Improved transparency

It allows companies to access more accurate and up-to-date financial data, which increases transparency between them and their customers. This helps establish long-term relationships.

3. Access to new markets

The system allows companies to access new markets, such as those related to cryptocurrencies and decentralized finance. This means they can expand their business beyond the traditional financial call.

4. Greater access to financial services

Companies now have access to various financial services, including payments, loans, and investments. This means they can explore other funding sources and get better interest rates.

Open Finance and data security

Security in the Open Finance system is one of the biggest challenges for the industry. With the increasing adoption of new technologies such as blockchain and artificial intelligence systems, financial institutions are exposed to a number of security threats.

Data from Checkpoint Research shows that the average number of cyber attacks in Brazil in the second quarter of 2022 increased by 46%.

Therefore, new systems require new security strategies, as users can access systems anytime and from any device.

In addition, mobile users also pose challenges. Institutions need to be sure that user data and the funds being traded are safe.

Thus, institutions need to deal with new cyber threats like DDoS attacks, malware, and ransomware. Check below some security fronts cited by Open Banking Brasil that should be on the radar of financial institutions:


Cybersecurity is a crucial concern for companies using the Open Finance system.

Thus, investing in measures is crucial to ensure that system users are protected against threats, including viruses, malware, information theft, and phishing attacks.

To ensure system security, companies must implement measures such as data encryption, the use of firewalls and the use of strong authentication mechanisms.

In addition, companies must train their employees to understand how to identify and react to cyber threats and maintain continuous monitoring to detect cyber attacks.

To guarantee security and trust in the system, there are strict and specific rules for the accountability of financial institutions to prevent leaks of user data and for them to adopt measures to guarantee a safe experience for their customers.

Digital identities

A very common security occurrence today is leaks and identity theft, which involve data such as passwords, registration data, and personal documents.

When leaked, this data can be used to commit crimes, such as applying for a fraudulent loan, or gaining access to a bank account, among other scams.

Thus, it is necessary that the personal data of those using the system, such as name, address, credit card number, etc., are stored and processed in a secure manner.

To ensure data security, it is necessary to have a strong and reliable authentication system, such as the use of digital certificates, strong passwords and data encryption. With these features, users can be confident that their data is safe and secure from unauthorized access.

Security for your payments

Today, payments are increasingly “invisible” and inserted into the user's routine. Due to this immediacy, it is necessary to be prepared for a new growth in the volume of financial crimes related to payments.

In Open Finance, artificial intelligence becomes even more necessary as it can learn from a dataset and develop an accurate picture of a typical customer and their behavior, in addition to securing end-to-end payment transactions.

Security in digital payments is essential for the success of the Open Finance system. Companies must be aware of the associated risks and vulnerabilities, as any failure can cause damage and compromise their reputation.

Open Finance: count on Qintess for the adoption of the system in your institution

In order to serve your company by offering end-to-end digital innovation, we at Qintess have developed a set of solutions to support financial institutions in adopting Open Banking.

Thus, we operate in six different technological areas that range from the development of digital applications through cybersecurity and adaptation to the General Law for the Protection of Personal Data (LGPD) to advanced data analysis to generate business insights.

Ensure that your operation with Open Banking is effective, safe, and focused on your customer's experience.

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