We’ve been working hard to start the year with a new product release: we’ve included data aggregation from investments to our coverage of financial data sources in Brazil.
We’re officially live with our Investment aggregation product (in BETA for now) in Brazil. You can now access information about your users’ investment holdings across banking and broker institutions. We wanted to provide financial innovators with an easy way to bring together users’ financial data from all the institutions possible through a single API call: banks, gig economy providers, and now investment brokers.
With Brazilian interest rates on “classic investments” dropping at low levels of returns and a middle-class household that keeps growing, customers are looking for new instruments with higher yields. In 2020, the total amount invested by individual investors was around R$3.7 trillion, which represents a growth of 13.4% compared to 2019.
In recent years, the investment sector has become more accessible. And Brazil has also taken a step forward in 2021 to facilitate access to these products with the implementation of the first four phases of Open Banking regulation.
Now, investing is no longer restricted to highly qualified traders working for NYSE, a private equity firm, or any other stock exchange. Today anyone with a smartphone and internet connection can buy Apple or Tesla stocks, invest in cryptocurrencies such as Ether, Bitcoin, or Dogecoin, and follow the volatility of the NTF market. In order to match the demographic and economic transformations that the financial Brazilian market is experiencing , it quickly has become indispensable for financial innovators to be able to access and interpret their users’ accounts and investments holdings.
How does it work?
We now officially support Investments in Brazil with a very strong coverage including:
- Itaú retail
- Bradesco retail
- Santander retail
- BTG Investimentos
- XP Investimentos
- Caixa (coming soon)
Through our Investments resource, you can extract the main attributes about your user’s investment holdings across banking and broker institutions. You can also retrieve data about your users’ investments portfolio and the different instruments that compose them.
A portfolio is a grouping of investment products (called instruments) that your user has purchased. The way portfolios are grouped is institution-specific: for example, one institution may group stocks and funds in the same portfolio, while another might group these in separate portfolios. For now, Belvo’s API returns the following types of portfolios:
|Portfolio type||Definition||Included instrument types|
|Fixed_income||It refers to those types of investment security that pay investors fixed interest or dividend payments until its maturity date. Government and corporate bonds are the most common types of fixed-income products.||Bond, Deposit|
|Variable_income||It’s a type of investment where the remuneration is not known at the time of application, its prices are always changing and it’s not easy to predict the yield. The most common example of variable income investments are stocks or shares.||Stock, Fund, ETF|
|Pension||Pension funds are financial intermediaries which offer social insurance by providing income to the insured individuals following their retirement. Pension funds also play a role in financial markets as institutional investors and vary greatly across countries.||Pension|
|Other||This group refers to assets or items acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the value of an asset over time.||Reserved for currently unmapped instruments|
💡 This resource is currently in BETA for all users. If you see any issues, don’t hesitate to contact our support team.
With the emergence of new digital platforms and the rise of Open Finance the competition within the investment industry is becoming more and more fierce. By sharing their data, consumers can be placed at the center of these new models, as it allows them to compare investment offers and negotiate better returns.
By centralizing a client’s financial data in a single application, you can increase portability between brokers as well as investment products and trades. This also contributes to making investments transfers more agile and facilitating the client migration towards your solution in the most secure way. For instance, if a customer isn’t satisfied with their pension plan, they will be able to migrate their investments to another plan or another financial institution free of charge thanks to portability. This provides more flexibility to the end-user by giving them the opportunity to compare brokers, looking for lower rates, or combine their investment strategy with different products and returns.
Centralize any financial data through a single API
As the information and data are spread between different players and applications, financial innovators need to have a holistic view of their users’ data. A single API call to access this information helps them to provide a better user experience and increase the quality of advice and recommendations. For instance, by being capable of retrieving any financial data from a BBVA’s checking account, together with data from Rappi’s account and stocks detained through Bradesco, financial innovators can improve their different data flow and sources to build tailor made solutions and products. By having a “big picture” of all the institutions and financial brokers that your customer works with, you can monitor their financial health, make better decisions and provide better returns and services: it’s a win-win situation for all.
Investments are already available in our sandbox environment. Check it out!