Mercado Pago Surpasses 2.5 Million Open Finance Consents

Published 7 months ago

Mercado Pago, the digital bank of Mercado Livre, has surpassed 2.5 million consents for data sharing under Open Finance, a financial information sharing system led by the Central Bank. This means the institution has received 2.5 million authorizations from customers to access their financial movements from other institutions.

Patrícia Leal, the company’s innovation director in payments, asserts that the system has already been aiding in the provision of credit.

Impact on Credit Origination

According to Leal, “80% of the credit origination of new sellers on Mercado Pago is already a result of data analysis shared via Open Finance.” The firm is increasingly using technologies such as Machine Learning and Generative Artificial Intelligence to swiftly handle shared data, using this information to offer better credit conditions and personalized services to their clients.

Leal believes that customers have already started to see the benefits of data sharing, particularly during credit offers. She emphasizes the potential of Open Finance in financially empowering Brazilians, allowing people to own their financial history and consequently gain access to better conditions in financial services.

An important aspect to note, as Leal points out, is the importance of both the consent and its renewal. Each Open Finance consent has a maximum term of 12 months and needs to be renewed by the customer upon expiration. Otherwise, the banks and fintechs with which the data was shared lose access to it.

She further adds that there is likely to be a positive evolution in the renewal process this year, aiming to simplify the procedure for users. Mercado Pago informs its customers in advance when the renewal period is near.