CGAP Impact of Open Finance in Brazil

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Assignment Title: CGAP Impact of Open Finance in Brazil

Assignment Countries:

- Brazil ASSIGNMENT DESCRIPTION

About the Leveraging Datafor Inclusive Finance project

The objective of the Leveraging Data forInclusive Finance project is to support the use of data to increase thebreadth, depth, and utility of the financial sector by supporting thedevelopment of inclusive data ecosystems. Specifically, the project focuses onthe development of inclusive and effective open finance frameworks andinclusive and responsible AI models, that consider the implications fortraditionally excluded and vulnerable customers. The project is organized around threeworkstreams: (I) Open Finance Design focused on providing guidance topublic sector entities looking to harness the power of data for financialinclusion through open finance; (II) Open Finance Impact focused on gatheringthe evidence base for the impact of open finance on customers, providers andthe financial sector; and (III) Artificial Intelligence (AI) focused on howto maximize the benefits while minimizing the risks of AI use, especially fortraditionally underserved segments. This TOR is focused on gathering evidence-basedinsights for the Open Finance Impact workstream.

Objectives of this project

CGAP has shown how data-driven financial ecosystems are opening new pathways to moreinclusive, useful and responsible financial services. Open finance —a frameworkthat facilitates customer-permissioned access to and use of customer data heldby financial institutions— is becoming a critical component of digital publicinfrastructure for innovation, competition, and customer empowerment. By givingFinancial Service Providers (FSP) access to customer-permissioned transactionhistories, payment flows, account balances, and other data beyond traditionalcredit records, these frameworks lower onboarding and application costs, enablemore tailored products, enhance risk management, and expand the utility offinancial services. CGAP’s research shows that open financedelivers tangible value for consumers. Through India ’s Account Aggregator Framework, customers have shared data to accessbetter services, while open finance-enabled Personal Financial Management ( PFM ) tools have significantly improved their day-to-day money management,resilience planning, and confidence in their financial skills. CGAP’s 2023–2024 research in Brazil, based on a nationally representativesample of 2,000 respondents, established a baseline when open finance adoptionwas approximately 10%–15%. Although implementation was still at an early stage,the findings showed increased uptake of PFM tools. Since then, adoption has reachedaround 50%, creating a timely opportunity to generate new evidence as openfinance scales. This follow-up survey aims to generate further insights into whatdrives sustained adoption, which use cases create the greatest value forcustomers, what are the perceived risks, and how open finance-enabled PFM toolsaffect financial health outcomes. The follow-up survey aims to answer the following questions at theminimum: Open finance adoption, continued use, perceived benefits and risks

• Who has adopted open finance? And forhow long?

o Have they used it for personal purposes, for their business, orfor both?

• For those who have not adopted openfinance, why have they not adopted it? What would drive them to adopt?
• For those who initially adopted butdid not renew their consent, why did they not renew their consent? What woulddrive them to adopt again open finance?
• For those who are current users, whatdrove them to adopt open finance?

o What has their experience with open finance been? o Which open finance use cases do they use, and how frequently? o What benefits have they received from open finance? o Which use case creates the greatest value for them? Why?

• For those who have used it for theirbusiness, has their business benefited from open finance? How?
• How do they (both open financeadopters and non-adopters) currently assess their:

o ability to manage their day-to-day finances? o ability to reach their financial goals? o ability to withstand financial shocks? o confidence in their ability to manage their finances?

• Have they (both open finance adoptersand non-adopters) currently:

o experienced an increase in debt; o had difficulty repaying debt; o begun carrying credit card balances from one billing cycle to thenext; or o taken on additional debt to repay existing obligations? Use of open finance-enabled PFM tools. For active PFM users, the PFM module will address thefollowing questions:

• Which PFM apps/tools do they currently use,including tools available within their banking apps?
• Does the PFM app/tool aggregateinformation from different providers?
• How long have they used these PFMapps/tools, and how frequently do they use them?
• Have they discontinued using any PFMapps/tools? If so, why?
• What do they use the PFM apps/toolsfor?
• For long-term active users, whatdrives sustained engagement, what design features make PFM tools most effectivefor them? And how could their experience be improved?
• Do the customer think that using theapp has impacted their financial health?

Scope ofWork The vendor will be expected toconduct a nationally representative quantitative survey. They will submit adetailed research plan including a quantitative survey guide (questionnaire),and implementation methodology. The CGAP team will approve the research planbefore the vendor proceeds with conducting the survey/interviews. Thequestionnaire will follow-up questions from 2023-2024 adding a special moduleon the experience and benefits of open finance-enabled Personal FinanceManagement tools. The detailed requirements of the survey are listedbelow:

• The survey would be carried out on a nationallyrepresentative sample of at least 2,000 Brazilian adults. The vendor wouldrecruit the sample of respondents. Interviews will last about 15-20 minuteseach.
• The dimensions toconsider for developing a nationally representative panel would be gender, age,income bracket, occupational status, economic activity, location, and level ofeducation. The sampling should follow the same methodology as the 2023 surveyto ensure comparability.
• Surveys would beconducted over the phone using Computer Assisted Telephone Interviewing (CAIT)by qualified interviewers.
• The responses of allsurveys will be recorded, and the vendor will provide a report with aggregatedresponses (for the full sample and for demographic segments) as well as a publication-readydataset.

Methodology Themethodology and questions should follow closely from those implemented in the2023-2024 survey (more information here ). The vendor will work under theguidance and supervision of the CGAP Task Manager. The Task Manager and otherCGAP staff will participate in the review and guidance of the work and in someof the direct engagements, based on the specific requirements of each task. Deliverable(s)

The expected deliverables include:

- Deliverable 1: Research plan including sampling methodology, comparability with previous waves, quantitative survey guide, and implementation plan.

- Deliverable 2: Mid-project report with progress and summarized insights delivered as a slide deck.

- Deliverable 3: A final report and a publication-ready dataset. The final report should present the results from the survey, summarizing and aggregating insights in a slide deck. The survey data should be delivered as a publication-ready dataset in Stata *.dta, or other software agreed upon with the TTL (explanatory text descriptions for every variable name, text mappings for categorical numerical codes to avoid blind data, numeric variables are stored correctly as byte, int, long, float, or double, and standardized treatment of non-responses to prevent data from being treated as zeros). The raw data must include standard benchmark demographics (gender, age, income bracket, occupational status, economic activity, location, and level of education), variables defining the stratification layers, non-missing unique identifiers, and sample weights. The dataset should be accompanied by a clean master *do file *log file or data dictionary providing its cleaning steps. Timeline The work is expected to be completed in 4months after the selection of the vendor. FUNDING SOURCE The World Bank Group intends to finance the assignment / services described below under the following:

- BB: Bank Budget

- TF0D1531: CGAP

ELIGIBILITY

Eligibility restrictions apply

- Refer to qualification criteria and necessary skills and experience (TOR). SUBMISSION REQUIREMENTS The World Bank Group invites eligible firms to indicate their interest in providing the services. Interested firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms; CV and cover letter for individuals). Please note that the total size of all attachments should be less than 5MB. Firms may associate to enhance their qualifications unless otherwise stated in the solicitation documents. Where a group of firms associate to submit an EOI, they must indicate which is the lead firm. If shortlisted, the firm identified in the EOI as the lead firm will be invited to the request for proposal (RFP) phase. Expressions of Interest should be submitted, in English, electronically through WBGeProcure RFx Now NOTES Following this invitation for EOI, a shortlist of qualified firms will be formally invited to submit proposals. Shortlisting and selection will be subject to the availability of funding. Only those firms which have been shortlisted will be invited to participate in the RFP phase. No notification or debrief will be provided to firms which have not been shortlisted. If you encounter technical difficulties while uploading documents, please send an e-mail to the Help Desk at corporateprocurement@worldbank.org prior to the submission deadline.

Procurement number: 0002024227. Expressions of interest are submitted through the World Bank Group's eProcure (RFx Now) portal, which requires vendor registration.