22 October, 2018
Brazilian banks prioritize API development

Brazil’s banks are making investments in application programming interfaces a priority as open banking regulations advance

By Katie Llanos-Small


Brazilian financial institutions are prioritizing investment in application programming interfaces above other areas of technology innovation, according to a survey released last week.

On average, CIOs of Brazilian banks and brokerages rated APIs as a higher priority for investment than even information security and UX upgrades, according to the survey by Cedro Insights, a division of Brazilian vendor Cedro Tech.

Three-quarters of the executives surveyed said they were using an API gateway to develop their APIs. Of those, 53% used an in-house gateway; 26% used Amazon’s API Gateway, 17% used WSO2 API Manager, and 4% used IBM’s API Gateway.

The survey, based on a survey of 100 technology executives at Brazilian financial institutions – predominantly brokerages and banks – comes as Brazil’s regulators advance with regulations on open banking.

Brazil’s central bank is reported to be in talks with financial institutions over the scope of open banking rules.

Up for discussion is the amount of data that banks will be required to share with third parties, the types of institutions that will be allowed to tap into bank APIs, and the timeframe for implementation.


Open banking importance

As previously reported by iupana, Banco do Brasil, Banco Bradesco and Banco Original are among those dabbling with APIs to better understand both how the technology works in practice, as well as its potential benefits.

Banco Bradesco has developed APIs and put them to use with its online-only platform, Next. The new banking brand, targeted at digital natives, connects with the traditional bank’s core systems through a set of APIs.

Meanwhile, partially state-owned lender Banco do Brasil has been trialing a sandbox area for developers since August 2017. And Banco Original is working with startups and third-party app producers to customize features and deliver services based on a platform provided by the bank.

Around 650 developers have requested access to Original’s APIs and they are using the bank’s sandbox to create and test app ideas.

“We have 144 applications running at this environment,” Paulo Felipe de Oliveira Antônio, architecture and IT governance superintendent at Banco Original told iupana earlier this year.


AI lower priority

Cedro’s survey indicated that investment in cognitive technologies was a lower priority for Brazilian financial institutions. Investment in cognitive tech ranked seventh out of eight areas of focus.  Still, 50% of respondents said that they were working with cognitive technologies such as artificial intelligence, machine learning and cognitive computation.

Of those, 29% were developing their own technology in-house, and an equal proportion said they were working with Microsoft technology. Some 20% said they were working with Google technology, 16% with IBM and 6% with Amazon.

Brokers made up 53% of survey respondents and banks, 32%. The survey was conducted in May.

More News
Mexico’s banks work on culture change to stay ahead of Big Tech

From agile working practices to blue hair, banks target dynamic internal mood

29 October, 2018
Microfinance fintechs in Brazil grow, but banks still dominate

Fintech startups can offer better rates and service than Brazil’s largest banks, but remain hindered by regulations

1 October, 2018
Banregio targets bigger presence in clients’ lives with digital services

Through machine learning, apps and APIs, the Monterrey-based bank aims to get closer to its clients, says CEO Manuel Rivero

17 September, 2018

Scotia bets on digital factories for innovation

Scotiabank is investing USD 10million each year in digital transformation, says Ignacio Deschamps

13 September, 2018
Mexico’s fintechs step into new legal era with secondary regulation details

Startups will need to be strategic and spend more to comply with new rules – but the specifics of the fintech law will drive investment

11 September, 2018
Credit card registry opens fintech opportunity in Brazil

Planned rules to track credit card receivables centrally could drive competition, tech in Brazil’s payments system

7 September, 2018

LatAm fintech insights
Get the scoop on how your peers, competitors and clients are using fintech to get ahead. Leave your details to receive iupana's exclusive, in-depth coverage of banking technology in Latin America and the Caribbean in your inbox on Monday mornings. (You can unsubscribe in one-click if you decide it's not for you.)