Roberto Jabali, Executive Director of Credit, Fraud Prevention and Collection at BV Bank, explains how BV Bank’s Open Finance is an evolving ecosystem that gives customers more control over their finances.
BV Bank’s Open Finance features allow customers to make investments and pay vehicle financing instalments directly through the bank using the balance in their accounts from other financial institutions.
Open Finance is an evolving ecosystem that gives customers more control over their finances. In line with this, BV Bank, one of the country’s largest financial institutions, has just launched two experiences to simplify the lives of its customers: the possibility of making investments and paying vehicle financing instalments with the balance in accounts from other banks.
“Open Finance provides more freedom for consumers and brings convenience to their financial organization. The future of this market will be based on offering personalized and integrated products within the ecosystem, things that only technology can make possible,” said Roberto Jabali, Executive Director of Credit, Fraud Prevention and Collection at BV Bank.
The first innovation allows BV Bank customers to make investments using the balance in accounts from other financial institutions. It is now possible to view the updated balance of each bank and invest directly in BV’s Certificate of Deposit (CDBs). This is the first use case in the market that combines the use of data and Payment APIs to provide a simple investment experience.
“One of the pillars of our investment in innovation is a focus on the customer. We always seek to offer the best experience. In this case, within a few days of operation, the average investment ticket has already increased by about 50%. Our differentiator is not only the ability to view balances in other institutions but also the ease of transferring funds from other banks with a quick, simple and intuitive experience,” said Ricardo Sanfelice, Executive Director of Customers, Products and Innovation at BV Bank.
With the option of Financing Instalment Payment, customers can now pay overdue instalments for vehicle financing. Instead of issuing invoices, customers can settle payments with the balance in accounts from other institutions directly through BV’s channel when opting for Open Finance payments.
These two experiences complement Cash In (account deposit) and PIX Multibank, totaling four experiences with the ITP (Payment Transaction Initiator), a market leader in this regard.
We asked Roberto Jabali, Executive Director of Credit, Fraud Prevention and Collection at BV Bank, further questions to find out more.
How does BV bank’s Open Finance platform use technology to allow customers to make investments and pay installments of vehicle financing using balances from other financial institutions?
BV bank’s Open Finance platform uses the Payment APIs standardized by the Central Bank that allow us to securely connect to the accounts of other institutions and thus transfer funds to BV. These transfers are carried out through PIX and, therefore, are instant and free. Once the transfer is completed, the amounts are invested in a CDB of the customer’s choice or used to pay off installments of the financing.
Could you elaborate on the technological infrastructure behind Open Finance and how it provides customers with greater control over their financial transactions?
Payments via Open Finance have two main agents, the ‘Account Holder’ institution and the ‘Payment Initiator’. In the use cases described above, BV acts as an initiator, i.e., BV ‘fetches’ the balance from other account-holding institutions. The communication between these two agents takes place basically through REST APIs and must follow a series of technical requirements for encryption, authentication and standardization of information that ensure interoperability between the hundreds of institutions participating in the Open Finance ecosystem. The customer is the biggest beneficiary of this transformation, as they gain the flexibility to consult and make payments through a single application, no longer having to access the applications of all banks.
In the context of Open Finance, how does Banco BV ensure the security and privacy of customer data by integrating with other banks’ systems?
Communication between institutions participating in Open Finance follows a series of mandatory technical requirements, which aim to ensure the security of data flow and payments. A connection is only established when the two parties, transmitter and receiver, authenticate each other mutually (MTLS protocol) and all information trafficked is encrypted. In addition, BV bank follows all the guidelines of the LGPD (General Data Protection Law), which provide transparency to the customer of what data is shared, for what purpose it is used and for how long. Finally, the customer can stop sharing the data at any time.
Can you explain the role of payment data and APIs in the innovative use case that allows customers to invest directly in BV bank’s Certificates of Deposit (CDBs) using balances from other banks? What technological challenges have been overcome?
APIs are a fundamental part of the use cases, as they allow the financial movement of other institutions to BV. The first major challenge is to ensure interoperability with hundreds of institutions, so that payments are completed successfully. However, this is not enough for us to deliver an excellent experience. The client expects to see consistent balance data between BV’s application and those of other banks. This is where the second challenge comes in: optimizing our infrastructure to update the data of all connected accounts in seconds, so that the customer makes the right decision of which account to use.
With the introduction of Financing Installment Payment through Open Finance, what technological advancements have been made to simplify the process of paying overdue vehicle financing installments, and how has this benefited customers?
By generating a payment agreement, customers have the flexibility to choose to repay the installment of the financing or loan using available balance at other institutions. This approach offers a convenience to customers by simplifying the payment process and providing more affordable financial options. For customers, one of the great benefits is the possibility of immediate settlement of overdue installments, considering that before Open Finance to make a payment it was necessary to make the payment via boleto with compensation of up to two business days.
