Privacy Tools held the event "Privacy Above All: LGPD in Open Banking" last Thursday (September 30th). The event brought together experts in the field to discuss the presence of the General Data Protection Law (LGPD) in Open Banking.
The General Data Protection Law
The LGPD (Brazilian General Data Protection Law) came into effect almost a year ago. During this period, consumers/clients have won more than 1.1 lawsuits. This is because the new law allows users more control over the use of their personal data.
According to the regulation, personal data is information that can identify someone. Within this concept, the category "sensitive data" was created. It includes information about racial or ethnic origin, religious beliefs, political opinions, health, or sex life. Records like these will have a higher level of protection to prevent forms of discrimination.
“The data subject must be able to understand what is happening with their data. (Principle) that is linked to the LGPD, which is informational self-determination, which is the right of each person to defend and control their personal data,” highlighted Raissa Moura, representative of the company Incognia, during the event.
Data processing is defined in the LGPD (Brazilian General Data Protection Law) as "any operation performed with personal data, such as those relating to collection, production, reception, classification, use, access, reproduction, transmission, distribution, processing, archiving, storage, elimination, evaluation or control of information, modification, communication, transfer, dissemination or extraction".
With the changes that occurred in 2021, users can request their data from companies. Furthermore, it's possible to request that any stored information be completely deleted from the database.
How does the LGPD (Brazilian General Data Protection Law) stand in the context of Open Banking?
Open Banking is the standardization of the process of sharing financial data and services between banks. This occurs through the integration of digital platforms. Participating institutions must be regulated and duly authorized by the Central Bank (BC).
According to the Central Bank, Open Banking aims to increase competitiveness among financial institutions. Furthermore, it should improve and expand the range of products and services offered to customers. However, customer data will be shared among various institutions. This raises the question of the LGPD's (Brazilian General Data Protection Law) presence in Open Banking.
“Our focus as data privacy professionals is to reduce the occurrence of threats. Threats in Brazil are more active, and the most attacked sector is the banking sector,” reinforced ANPPD member Davis Alves. He further added that “Open Banking has empowered the user. Before, decisions were mostly made by the controller. Now we will share data between the financial institution and the data subject. Now, we will also share responsibility.”
How can we ensure data protection during Open Banking?
Data sharing during Open Banking occurs with the prior consent of the citizen. However, the occurrence of scams and crimes involving the leakage of banking data in Brazil is alarming. Therefore, more than in other common situations, it is necessary to rigorously monitor compliance with the LGPD (Brazilian General Data Protection Law) in Open Banking.
“The great challenge we face is adapting all processes, both in terms of data privacy and Open Banking, so that the relationship regarding data management is as transparent and legal as possible from a legal standpoint,” said Jefferson Thomas, representative of Banco Cooperativo Sicredi.
The Incognia representative in the debate agrees with the challenge presented by Thomas. “We have a challenge: to respect the privacy and data protection of Open Banking users while also considering the regulations governing the entire Brazilian ecosystem, without neglecting the LGPD (Brazilian General Data Protection Law),” concluded Raissa Moura.
The event hosted by Privacy Tools is available to view on the company's YouTube channel:
