The General Data Protection Law was created 4 years ago and has since brought several advancements to the country, as has Open Finance, which has brought numerous benefits through the sharing of customer data between banks. The major concern, however, is data security in this new mode of sharing.
It is a fact that today the biggest concern about Open Finance It is related to the level of security provided to data subjects, because since personal data is now the gold of the digital world, there are many criminals looking for this information.
Open Finance is designed to provide security. The idea is that financial transactions can be carried out without major concerns, protecting user information against potential theft, access, and modification by third parties.
However, it is important that the security practices They must stay up-to-date to ensure that users' information is not put at risk. To guarantee this, there is the LGPD.
What is the LGPD, Brazil’s General Data Protection Act?
A General Law of Data Protection (LGPD) is a law that regulates the scenario of privacy and data protection of the country, providing guidelines for the proper handling of personal data.
Therefore, it is up to the institutions to promote the measures necessary to comply with these rules based on the following principles:
- Principle of Purpose: to have legitimate, specific purposes for the data subject regarding the collection of their data;
- Principles of Adequacy: data processing must occur in accordance with what was informed to the data subject;
- Principle of Necessity: treatment should only be for its intended purpose;
- Principle of Free Access: the data subject has the right to freely consult, free of charge, information about the manner and duration of the processing of their personal data;
- Principles of Data Quality: It's about the accuracy, clarity, relevance, and timeliness of data to fulfill the defined objective;
- Principle of Transparency: It's about clear and easily accessible data;
- Security Principle: This refers to the technical and administrative measures aimed at protecting personal data from unauthorized access.
- The Prevention Principle: This refers to measures to prevent harm from occurring due to the improper handling of data.
- Principle of Non-discrimination: the processing of data cannot be carried out for discriminatory or unlawful purposes;
- Principle of Accountability and Reporting: This refers to the ability of the Data Controller or Data Operator to comply with the law.
What does Open Finance have to do with the LGPD (Brazilian General Data Protection Law)?
Being the Open Finance In a system for sharing information, the LGPD (Brazilian General Data Protection Law) becomes fundamental for operations to be carried out securely.
Financial data being taken into consideration sensitive personal dataAll financial institutions participating in Open Finance are required to act within the law, including the Central Bank.
In Open Finance, the data subject authorizes the sharing of their data with the financial institutions of their choice, an action carried out through encryption, providing greater security.
The Open Finance ecosystem was created to provide autonomy for account holders, since they are the ones who decide with whom and for how long they will allow this sharing.
Finally, it is precisely for these reasons that every financial institution participating in Open Finance needs to... follow the LGPD guidelines and submit to oversight by the responsible regulatory bodies.
Compliance with the law is how institutions provide greater security for users, maintain their credibility in the market, and ultimately help ensure the proper functioning of the entire Open Finance system.
