The Central Bank will facilitate the exchange of loan operations from one bank to another based on the customer’s request. BC reported on Friday that it has included the transfer service in Open Finance, an ecosystem created by BC that allows for the sharing and exchange of information between participating banks and fintech companies. The new feature will be available to the general public from February 2026, in the form of Personal Credit.
Today, it is possible to demand that the bank granting credit be changed, but the process is bureaucratic and completely inefficient in practice. According to BC, the current transfer process will be maintained and BC’s goal is to provide another alternative to the customer. The agency said the change should bring greater efficiency and reduce the time needed to complete the process.
“Credit portability through open finance will bring greater efficiency in accessing and exchanging information, which can be shared in a secure, agile, standardized and digital manner, eliminating information asymmetries and operational barriers and providing an automated and more efficient process,” BC said in a note.
At the same time, according to the agency, this method will provide a better customer experience, through a digital journey throughout the entire portability cycle. The new procedure will reduce the time needed to complete credit transfers – from up to five business days to up to three business days – and has the potential to reduce costs and increase competition.
According to the regulator, the measure takes effect immediately, but there will be a transition period in which financial institutions will conduct tests on a restricted basis until February.
New rules for regulated company names
On Friday, BC also announced changes to the rules for naming financial institutions. According to the new rule, establishments will be prohibited from using terms that refer to an activity or type of establishment, in Portuguese or in a foreign language, for which they do not have a specific operating permit.
For example, organizations that have the term “bank” in their name, but do not have a specific BC license to carry out this activity, will no longer be able to use this term. This is the case, for example, at Nubank, among many other institutions.
BC explained that anyone who does not comply with the new rule must prepare an adaptation plan within 120 days. The plan must include, at a minimum, the procedures to be adopted and the deadline for the institution to adapt to the new rules, which must be a maximum of one year.
“When providing them to the public, licensed establishments must use terminology that makes clear to customers and users the type of establishment providing the service,” the BC explained.
The designation covers the trade name, trade name, trademark and Internet domain used by establishments licensed to operate by the BC and applies to any means of communication and presentation to the public at such establishments.
For financial groups, member institutions will be allowed to use designations that indicate the activity of one of the companies that make up the conglomerate in their presentation to the public.
Outsourcing financial services
On Friday, BC also announced stricter rules for the outsourcing of banking services by regulated institutions, called banking as a service (BaaS). According to the authority, the main objective of the regulation is to mitigate potential risks to customers and interested parties, and to integrate appropriate legal security into companies. The rule goes into effect immediately, but existing contracts could be amended until the end of next year.
“In addition, the rules aim to preserve the health of the financial market and payments system, while enhancing efficiency, competition and access to products and services available through this model.”
BC also highlights that the Regulation clearly defines the parties involved in the BaaS business model, as well as the responsibilities of each. Furthermore, it covers aspects such as corporate governance, risk management, internal controls, security requirements, conduct, contracting and accountability.
The provision of financial services via BaaS is in the crosshairs of many regulatory agencies, because loopholes in regulation have been used by criminal groups to move illicit funds. Pocket accounts, for example, are a typical BaaS tool, widely used legally on e-commerce platforms, but also used by criminals to hide the true owners of funds.
Pocket accounts are accounts opened in a bank or payment institution licensed by the BC by a legal entity, which collects resources from different holders, without discrimination. In the case of e-commerce, for example, platforms usually have pocket accounts in their name, where they collect resources from different vendors, and then pass them on to each third party.
In the rule released Friday, BC clarifies that accounts opened through a BaaS service must be owned by the financial service provider’s customer and the borrower.
Another new requirement of the rule published on Friday concerns the level of transparency of services provided in the BaaS model to customers. Among other provisions, the standard requires organizations providing BaaS services to ensure that the information necessary to identify them as providers of financial and payment services is accessible and visible to the customer in available channels and interfaces, as well as in contracts, other documents and payment instruments.
The standards also address the obligation of accredited institutions to keep various data, information and documents related to the services provided within the scope of BaaS at the disposal of the BC, as well as granting various powers to the supervisory area.