Access to information for users of the financial system, known as ‘open banking’, is one of the main topics on the agenda of the Superintendency of Banking, Insurance and AFP (SBS).
Although the SBS has already carried out a first study to identify the opportunities and challenges of its implementation in the country, it recently revealed that it is working on the design of a roadmap for its development in
The open banking scheme, which is what will be introduced in the country, allows the bank to share financial and transactional information of its clients with other service providers, such as fintech, with explicit authorization from the user.
The SBS is even suggesting the development of ‘open finance’, instead of ‘open banking’, so that it not only involves banks or financial system entities but also companies such as AFPs, insurance companies and other businesses,
This will benefit clients who already have a banking product, as they will be able to obtain personalized services more tailored to their interests, as well as the unbanked because they will have greater access to the financial system, she said.
Initially, this access to information was linked only to payments, but now the aim is to provide easy access to loans, deposits, electronic money, crowdfunding or currency exchange, said
Banking not only looks to fintechs and companies specializing in financial services for integration, but also to other technology businesses to improve the user experience, she said.
Thus, he explained that it can be a company from the real sector, not a financial one, that joins with a bank to provide a good or service in seconds, whether it is a banking product or a totally different one. For example, today we can see a voluntary integration between Rappi and
Customers will not need an account in each entity to acquire a product, but from a single platform they will be able to contract a good or service in the market, said Jaime Aritio, assistant manager of Business Development for
“You could also manage your assets and investments from a single entity; it is a business model that we have in
In that line, Vodanovic foresees that the process will be gradual and would be fully implemented in about two years, as it requires a finished regulatory framework that defines whether the model is mandatory or not for financial entities, the requirements to be met by third parties, the opening of the programming interfaces of the platforms (APIs), among others.
It is a challenging path and the complexity of its development will depend on whether the standard defines a voluntary model, in which financial institutions will decide to open customer information to companies that meet the data handling requirements, or mandatory, with which the bank will have to share such history to another firm if requested by the customer, he added.
“What must be ensured is a filter for third parties, otherwise anyone would access the information and put customers’ personal and financial data at risk,” he emphasized.
According to Sanchez, companies in the country are capable of implementing this mechanism and banks have a technological background, although there is a challenge in the cybersecurity system, personal data protection and user service.
The SBS indicated that once the implementation strategy of the open finance scheme has been defined, the participation of other authorities such as the
Likewise, the specialists consider that a joint action of the SBS, BCR and the Superintendence of the Securities Market (SMV) is essential.
Consumers will be empowered
Senior manager of financial regulation and fintech of EY Law
There is a bill being discussed in
Both regulators are in favor of promoting this model due to the benefits it offers and given the experiences of
Open banking seeks to empower consumers of the financial system so that they can decide that the information managed by companies in the financial system be shared with third parties in order to improve the provision of these services.
Thus, the companies that have access to these users’ information will be able to offer them other products tailored to their needs.
While this is positive, it is also important to note the challenges of implementing these policies. For example, the results are favorable in
These are factors to be addressed in the right way, with clear objectives and based on a standard regulation that strikes a balance between the right level of protection for information and access to the greatest number of third parties.
- 40 lending Fintechs were in place by 2021, out of a total of 151 financial platforms.