Open Finance: With Overdraft Alerts, Nubank Clients Reportedly Saved R$4M in Interest

Nubank (NYSE:NU), which claims to be one of the world’s largest digital financial services platforms, has just completed one year of its adherence to Open Finance (a system that allows customer data sharing among financial institutions with consent) and is “positively impacting its customers’ financial lives.”

The institution has reportedly “reached the mark of 12 million active consents and has already allowed users to save more than R$ 4 million (~US$800K) in interest over the last 150 days.”

This was made possible “by the innovative tool that notifies customers when one of their accounts goes into overdraft.” This experience allows the person “to avoid or reduce the impact of fees. Users who use the feature spend around two days less in overdraft than the average.”

Livia Chanes, Nubank’s operations leader in Brazil, said:

“Since the first discussions on the subject, Nubank has been active in building and developing Open Finance in partnership with regulators and the market. We want to advance this agenda and offer solutions that put customers more and more in control of their financial lives, with access to more personalized and accessible products.” 

The company also stands out “for its high conversion rate compared to other institutions in data sharing.”

It shows its ability to offer “a fluid experience and allow the customer to complete the process successfully.” While the average conversion rate of other banks is only 35%, Nubank’s average is around 65%. The institution joined Open Finance “in September 2022 and is already the largest receiver and transmitter of data in the ecosystem, being a benchmark in user experience.”

In addition to viewing the balance of other banks within the Nu app and receiving alerts about overdrafts, users will now “receive personalized recommendations via Open Finance when they have money sitting in accounts with low or no profitability.”

The aim is to help customers better “manage their finances and enable them to allocate their money to more profitable accounts or products, as well as reduce unnecessary costs with fees.”

Customers must authorize data sharing “from their chosen institutions with Nubank to access the Open Finance features.”

To do this, simply access “the Nu app’s settings area and click on Open Finance to start a new sharing. The sharing can be canceled at any time.”

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