Across the world, Open Banking is beginning to play an important role in the financial inclusion movement. A recent UK study found that, within financially marginalised groups, Open Banking could reduce fees to the point that it would save people around 0.8% of their total income and that, for heavily indebted, overstretched people, this figure could rise to 2.5%.
Brazil is one of three countries worldwide that has explicitly written financial inclusion goals into the legislation that enables its Open Finance regime. It is no surprise therefore to see leading use cases emerge from a market where, in April of this year, household debt hit almost 53% of household income. Lenders like Rebel are looking to transaction data as a solution but what needs to be done to broaden this practice? and what can brazil learn from other leading markets in the space?
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