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

Nubank, one of the world’s largest digital financial services platforms, has celebrated one year of its adherence to Open Finance, a system that allows customer data sharing among financial institutions with consent. According to reports, the company has already reached 12 million active consents, resulting in users saving over R$4 million (~US$800K) in interest over the last 150 days.

One of the key factors contributing to these savings is Nubank’s innovative tool that notifies customers when one of their accounts goes into overdraft. By receiving these notifications, users are able to avoid or reduce fees associated with being in overdraft. In fact, users who utilize this feature spend an average of two fewer days in overdraft compared to the average user.

Livia Chanes, Nubank’s operations leader in Brazil, expressed the company’s commitment to Open Finance, stating, “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.”

Nubank also distinguishes itself from other institutions in terms of its high conversion rate in data sharing. While the average conversion rate for other banks sits at only 35%, Nubank boasts an impressive average of around 65%. This highlights the company’s ability to provide a seamless and successful customer experience.

Since joining Open Finance in September 2022, Nubank has become the largest receiver and transmitter of data in the ecosystem, setting a benchmark for user experience. In addition to being able to view the balance of other banks and receive overdraft alerts within the Nu app, Nubank users will also receive personalized recommendations via Open Finance when they have money sitting in accounts with low or no profitability. This feature aims to help customers better manage their finances by allocating their money to more profitable accounts or products while reducing unnecessary costs.

To access these Open Finance features, customers need to authorize data sharing from their chosen institutions with Nubank. This can be done through the Nu app’s settings area by clicking on Open Finance to initiate a new sharing, and it can be canceled at any time.

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