A new market update will allow Brazilian financial institutions to also act as credit fintechs and payment institutions. The new resolution (nº 5.118) of the National Monetary Council (CMN) was recently released by the Central Bank (BC) and will be valid from September this year. The modification aims to modernize the Brazilian financial system, increased competition and inclusion and will also bring significant changes to the country's consumer.
The new rule allows financial companies to offer digital services with less bureaucracy, expanding its products and operations as: credit via app, online payments, issuance of tickets, cards with reduced fees and even providing digital exchange. In this way, in addition to the digitalization and agility of services, the new resolution provides for more credit options in the market and lower rates for consumers, due to increased competition.
The new resolution covers not only existing contracts, but the entire chain of financial solutions, also allowing the entry of new players into the market. Without this change, finance companies were restricted to traditional activities, and any diversification of services was possible only with prior authorization from the BC. Now, institutions will have more autonomy, as long as they respect the established rules.
Public consultation listened to the market
The new resolution was made possible after a public consultation held in 2024, which had broad participation from the financial market. The Central Bank states that the motivation for this new model is a consequence of limited regulation in the face of technological advances. Despite the novelty, adherence to the new model is not mandatory for financial companies.
“The measure allows the use of new technologies and business models by these institutions, encouraging competitiveness and increased efficiency in the National Financial System”, informed the Central Bank in an official note to Agência Brasil.
