OpenLink, the global leader in trading and risk management solutions for the financial services, corporate, energy, and commodities industries, has just completed the initial phase of a comprehensive banking and treasury solution at online start-up bank, Banco Original, based in Sao Paulo.
Founded in 1992, OpenLink is the global leader in Transaction Lifecycle Management (TLM) software for the commodity, energy and financial services industries. OpenLink’s products address portfolio management, trading, risk management, treasury management, and operations processing for financial and physical assets.
Banco Original was created in 2011 as a result of the merger of Banco JBS and Banco Matone. It claims to be the first 100% digital bank in Latin America and it focuses on retail customers. It is Most recently, it was named the Best Derivatives Operations Solution at the 2016 Financial Technology Forum Innovation Awards. Wanderley Baccala, CIO of Banco Original, said: “As one of Brazil’s most innovative banks, our technology is critical to our client service and to our success, so we placed a lot of trust in OpenLink. We are delighted to see that trust paying off, following a quick implementation supported by OpenLink’s local team in São Paulo. We are already looking forward to the next phase of the project, which will expand the scope of financial products supported.”[i]
The implementation was said to be completed in only ten months, through OpenLink’s Findur solution. Findur is the bank’s new cross-asset and treasury solution, integrated with internet banking and handling a range of financial products such as bank certificate of deposit (CDB), certificate of interbank deposit (CDI) and agribusiness credit note (LCA). Through this system, transactions are captured, processed and settled in the system with automatic client notifications.
Wanderley Baccala, CIO of Original, comments that the bank “placed a lot of trust in OpenLink”. That trust has paid off, he adds, following “a quick implementation supported by OpenLink’s local team in São Paulo”. The next phase of the roll-out will include additional debt, treasury and derivatives instruments.[ii]
How important is this development for the world of fintech?
Since the 18th century, business and banking have been in a happy relationship. And as in every relationship, there are ups and downs, and as the time goes by, there are evolutions in both sides. The tech evolution is one of them, and is now present at the services of Banco Original, the first financial institution in Latin America that works exclusively through electronic channels.
The recent development with OpenLink is one more step towards the uprising of the world of fintech in Brazil. Mobile functionality is the most important function that a bank can provide, and in the case of Banco Original, this is giving an innovative perspective, as it claims itself to be the first online Bank in Latin America. In general, new applications are continually being created to expand and improve capabilities on smartphones and other mobile devices.
In the case Banco Original, it is a bank that understands the needs of the market and the people, who are in dire need of tech solutions, and in that sense, this is the key characteristic that sets it apart from other similar institutions. In the case of Brazil, apart from the fact that this is showing the fintech growth in the country, it also shows that there is more than enough room for more innovative and relevant tech solutions, as well as for cross-asset and treasury solutions. Statistics from Ipea, the Brazilian Institute for Applied Economic Research, indicated that there are 55 million adults in Brazil with no bank accounts. On the other hand, data from the Brazilian Telecommunications Agency, Anatel, from June 2015 state that there are over 282.4 million mobile phone activations in Brazil with penetration a of over 115% in the whole country.[iii] A carnival of innovation, as Let’s Talk Payments suggests.
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[i]Tanya Andreasyan, Banking Technology http://www.bankingtech.com/508372/brazil-based-digital-bank-banco-original-live-with-new-treasury-tech/
[ii] Finextra, https://www.finextra.com/pressarticle/64783/banco-original-implements-openlinks-banking-and-treasury-system
[iii] Let’s talk payments, https://letstalkpayments.com/brazils-fintech-is-a-carnival-of-innovation-in-latin-america/