Latin America Advisor

Financial Services Advisor

A Daily Publication of The Dialogue

How Developed Is Open Banking in Latin America?

Open-banking initiatives are seeing strong growth in several countries of the world, according to IDB Invest. // File Photo: Jason Baker via Creative Commons.

Open-banking initiatives, which allow third-party service providers to access customers’ financial data through application programming interfaces, or APIs, are growing rapidly in several countries, IDB Invest said in a report earlier this year. The practice allows consumers access to a variety of financial products at better rates, as well as financial service providers to expand their reach, the report said. How developed are open-banking initiatives in Latin America and the Caribbean, and to what extent are consumers taking advantage of them? What assurances do consumers have that their data is being kept safe at the same time that more institutions have access to it? How adequate are government regulations on open banking in the region, and to what extent will industry advancements require their periodic updating?

Ray Ruga, co-founder and CEO of Fintech Americas in Miami: “As more banks modernize their technology infrastructures with open-API enabled platforms and as fintechs evolve and flourish throughout the region, two critical pieces of the puzzle are in place to make open-finance ecosystems a reality. However, today open finance is currently more of an aspiration than an imminent reality throughout Latin America and the Caribbean as only a handful of countries have or are moving to establish open-finance frameworks, led by Brazil and Mexico and followed by Chile, Peru and Argentina. While open-finance ecosystems offer great promise, the challenge in successfully implementing them requires the transformation, alignment and integration of four distinct but interrelated pillars, which include banks…”

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About the Financial Services Advisor

Covering Latin America’s banking and insurance sectors, remittances trends and data, micro lending issues, new technologies in the industry, anti-money laundering regulations, and much more, the Inter-American Dialogue’s biweekly Financial Services Advisor, a sister publication of the Latin America Advisor, gives readers fresh insight and diverse viewpoints from financial sector leaders. To subscribe or for more information, contact Erik Brand, publisher of the Advisor, at ebrand@thedialogue.org.


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Staff

Erik Brand

Publisher
P. 202-463-2932
E. ebrand@thedialogue.org

Gene Kuleta

Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Leticia Chacón

Reporter
E. lchacon@thedialogue.org

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