Chile fintechs in open banking push
In Latin America, banks and fintechs are forming alliances – but widespread collaboration is still not being seen.
However, despite current resistance seen in some quarters, their respective futures could be inextricably linked.
By joining forces with fintechs, banks can quickly and efficiently build their digital muscles not only to meet the demands of today's tech-savvy consumers but also to prepare for a possible incursion by a BigTech firm into the region's financial services space.
Then there is open banking, where banks allow clients to safely share their own transaction data with third parties, which, in turn, can use this to deliver innovative and tailored solutions.
In the words of law firm Pinsent Masons: "Open banking provides great opportunities for all sorts of businesses, including existing banks and fintechs, to innovate, strengthen customer relationships, and gain a share of new emerging financial product and service markets."
Global pioneer the UK is already implementing open banking and there are rumblings on the open banking front in Latin America. Chile's fintech association, FinteChile, is sharpening its focus on open banking and evangelizing its benefits, which also include driving down banking costs for customers and raising the level of financial inclusion.
Beyond educating the public, working with lawmakers, building trust in the technology, and laying the requisite regulatory foundations, for the emergence of such an ecosystem, collaboration, once again, is vital.
FinteChile executive director Ángel Sierra told BNamericas: "Collaboration is very important because, beyond open banking, the future of the financial industry points to an interconnection and convergence between banks and fintechs through APIs or other systems."
The view is shared by Pinsent Masons: "Collaboration between banks and fintechs will be at the heart of the future of open banking."
Sierra said that, at some point, banks and fintechs in Chile will need to sit down at the negotiating table: "The reality is that prior to or during this process, financial institutions and fintechs are going to have to talk, engage in dialogue, build, negotiate – and this process requires a mutual understanding. Therefore, it is very important that there exists a strong predisposition and openness towards collaboration by each party.
"Today we do not know what the perception of the banks is, given that open banking is not on their radar. What we do know is that there is reluctance regarding fintech regulation. There is therefore an important journey to take in which banks must realize that they can collaborate and establish alliances with fintechs that will benefit the whole market and their clients."
During a press conference on open banking, Sierra said authorities have a key role to play in the process: "In the west, UK, US and all of Latin America, the government has to make this happen." Chile wants to become a financial services hub in the region and Sierra said that open banking should be a part of its associated strategy.
Chile's banking association Abif did not immediately respond to a request for comment from BNamericas.
There have been advances in the area of open banking in Chile. Local heavyweight Banco Bci is working with APIs and Spanish personal finances management app Fintonic has landed in the country. While not an open banking app, it has similar characteristics, in that it allows a user to monitor in a single digital space their various bank accounts.
Elsewhere in South America, Colombia Fintech has signed an MOU with British open banking consultancy Open Vector to learn about regulatory best practice. And in Brazil, the central bank is working in the area.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Political Risk & Macro (Chile)
Navigating the arbitration seas of Chile's concessions system
BNamericas speaks with Pedro Zelaya, partner at law firm Zelaya Etchegaray & Co, who was recently selected by the supreme court to be one of 20 exp...
InvestChile's project portfolio increased 24% in the first half and reached US$34,531 million
The foreign companies supported by the agency concentrated their investments mainly in three sectors: Energy, Mining and Global Services, while the...
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects
Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.
- Project: Fótons de São Patrício 1 photovoltaic plant (Tianguá photovoltaic complex)
- Current stage:
- Updated:
3 days ago
- Project: San Martín Solar Photovoltaic Plant (ex La Joya Solar)
- Current stage:
- Updated:
3 days ago
- Project: Bellavista de Punitaqui solar project
- Current stage:
- Updated:
3 days ago
- Project: ITC SE Lambayeque North 220 kV with sectioning of the TL 220 kV Chiclayo West – La Niña/ Felam, extensions and associated substations
- Current stage:
- Updated:
3 days ago
- Project: Tortugo hydro plant project
- Current stage:
- Updated:
3 days ago
- Project: Cerro Rayoso hydroelectric plant
- Current stage:
- Updated:
3 days ago
- Project: Cundinamarca eastern perimeter corridor
- Current stage:
- Updated:
3 days ago
- Project: Paving of Linden - Lethem Route, Phase 2 (Mabura Hill - Lethem)
- Current stage:
- Updated:
3 days ago
- Project: Modernization of Five Generating Units of the Belisario Domínguez Hydroelectric Plant (Angostura)
- Current stage:
- Updated:
3 days ago
- Project: Expansion and Improvement of Drinking Water and Sewerage Systems in the Districts of Comas and Independencia
- Current stage:
- Updated:
3 days ago
Other companies
Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.
- Company: Puna Mining S.A.  (Puna Mining)
-
Puna Mining S.A. is an Argentinean joint venture incorporated in the year 2017 in Salta whose 77.5% interest was acquired in the same year by the Australian mining exploration a...
- Company: Odin Mining del Ecuador S.A.  (Odin Mining del Ecuador)
-
Odin Mining del Ecuador S.A., a subsidiary of Canada's Lumina Gold, is an exploration and development firm focused on gold and copper projects in Ecuador. Quito-based Odin Minin...
- Company: Prefeitura de São Paulo
- Company: NEXT Mobilidade
-
The description contained in this profile is taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been machine tran...
- Company: Kappes, Cassiday & Associates  (KCA)
-
Kappes, Cassiday & Associates (KCA) is a US-based company engaged in the development, engineering and implementation of extractive metallurgical processes for the mining industr...
- Company: Fomento do Brasil Mineração Ltda.  (Fomento do Brasil)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Ausenco Chile Ltda.  (Ausenco Chile)
-
Ausenco Chile Ltda. Is a subsidiary of the Australian firm Ausenco, which provides process infrastructure and engineering solutions in Chile since 1995. Based Santiago, Ausenco ...
- Company: Yacimientos de Litio Bolivianos  (YLB)
-
Yacimientos de Litios Bolivianos (YLB), created in 2017, is a state decentralized company, under the Ministry of Energy of Bolivia, which is aimed at developing the production o...
- Company: Proyectos de Inversión Vial del Oriente S.A.S.  (Proinvioriente)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...