Chile: Financial Market Commission calls for regulation of fintech sector

In Chile, the commissioner of the Financial Market Commission (CMF), Rosario Celedón, participated in a seminar on regulation and competition in the FinTech industry organized by the Red ProCompetencia, and on that occasion she expressed the need for that country to have a regulatory framework for the financial technology industry. This was reported by Diario Financiero, on August 28th, in an article signed by Vicente Vera.

According to that publication, the Chilean Ministry of Finance informed the Senate’s Economy Committee that the FinTech bill would be sent by mid-year.

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„Celedón recalled that in this period of pandemic, the traditional financial Immediate Bitcoin industry has been seen to accelerate its digitalization processes and FinTech has emerged as an actor that complements the innovation of the sector and drives its competition,“ said Vera.

For the commissioner, FinTech means „a positive development“. In addition, she said: „We agree that we have to put a lot of focus on how it develops. We believe that it can bring more efficiency and competition in the financial market that needs it“.

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The official also noted „Fintech can challenge traditional technologies, encourage financial inclusion and expand sources of financing for small businesses that are not served today.

In this context, Celedón said it is important to have a regulatory framework.

Employment generation

In Chile, several actors in the financial sector highlighted the role played by Fintech in the generation of jobs, banking penetration, business opportunities and in the relationship with banks, as strategic allies. This was reported by El Economista (version for America), on August 21, considering that this was a conclusion of the webcast „Fintech, banking and today’s Chile: collaboration in action„, organized by the consulting and auditing firm EY and FinteChile.

Guillermo Tagle, President of Creditcorp Capital; Manola Sánchez, Director of BCI; Soledad Ovando, Assistant Manager of Public Affairs at BancoEstado; Ángel Sierra, President of FinteChile; and Ariel Koch, Partner of Consultancy for the Financial Industry at EY, participated in the webcast.

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„The representative of BancoEstado talked about the need for a regulation that considers the best practices of the industry and that is in line with our reality,“ explained in the article of El Economista. According to her, it would be necessary to take as a model for Chile regulations that have sandbox with the participation of financial institutions, being able to experiment there in a space regulated and monitored by some authority. „Our financial market needs competition and today we are generating a very good level of fintech (technical and development) that has been recognized internationally,“ she said.

The director of BCI said that the legislation should prevent the leakage of talent abroad. „The entrepreneur will go to the place where it is easier for him to undertake, and since Chile does not have a regulation that adapts to the times (…) he will go to a country that makes it easier for him (England, Mexico, etc.) and the flight of talent may be something that will play against us if we think of an economic reactivation and the generation of a fintech ecosystem. It is necessary to have a modular and proportional regulation that allows the conditions and makes it easier, and at the same time generate interest so that talent arrives from other latitudes,“ he said.