InvestChile Blog

Fintech and open banking in Chile: Legal framework fast-track

Written by InvestChile | November,30,2020

The Ministry of Finance will work to draw up a legal proposal for an Open Banking Standard, promoting competition and innovation in the financial market and the incorporation of new fintech players. 

The Finance Ministry has announced that, in a bid to foster competition and innovation in the financial market and increase financial inclusion, it will develop a regulatory framework that promotes the development of fintech and open banking initiatives in Chile and the incorporation of new players in these industries.

For this purpose, the Ministry will be advised by Rosario Celedón and Ana María Montoya, experts in competition and financial regulation. They will work to design the measures, taking into account the comparative experience of countries that have already implemented initiatives of this type, such as the European Community, the United Kingdom and Australia and, in Latin America, Brazil and Mexico, with a view to creating regulation that continues to increase competition and innovation in financial markets.

With open banking, individuals and companies will have a secure way to allow new suppliers of financial products and services to access their financial information through the opening and integration of financial institutions’ platforms and information systems. This will enable them to access a broader offer of financial products and services on better conditions.

“This is the natural step after financial portability. We want to inject more competition into the financial sector, promote the offer of innovative financial services focused on the needs of customers, who will be able to have greater control over their financial information and, therefore, manage their finances better, at a lower cost and with better services,” explained Finance Minister Ignacio Briones. 

To find out more about the development of fintech and open banking initiatives in Chile, see this article.

Source: Finance Ministry