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They are demanding regulation of the fintech sector from the Commission for the Financial Market

In Chile, the Commissioner responsible for the financial market (CMF), Rosario Celedón, took part in a seminar on regulation and competition in the FinTech sector organized by the ProCompetencia network and on that occasion expressed the need for this country for a regulatory framework for Fintech -Industry. This was reported by Diario Financiero on August 28 in an article signed by Vicente Vera.

After this post, The Chilean Ministry of Finance informed the Senate Economic Committee that the FinTech bill would be sent out in the middle of this year.

“”Celedón recalled that during this time of the pandemic, the traditional financial industry has accelerated its digitization processes and FinTechs has become an actor that complements the innovation of the sector and strengthens competition“Said Vera.

They are demanding regulation of the fintech sector from the Commission for the Financial Market
They are demanding regulation of the fintech sector from the Commission for the Financial Market

Fintech means “a positive development” for the Commissioner. In addition, he said: “We agree that we need to focus heavily on development. We believe that this can lead to more efficiency and competition in the financial market that needs it.”

The official also highlighted “Fintechs can challenge traditional technologies, encourage financial inclusion, and expand sources of funding for small businesses that are no longer served today“.

In this regard, Celedón said it was important to have a legal framework.

Job creation

In Chile, various players in the financial sector have highlighted the role fintech companies play as strategic allies in job creation, banking, business opportunities and the relationship with banking. This was reported by El Economista (America version) on August 21, as it was a conclusion from the webcast “Fintech, Banking and Chile Today: Working Together in Action?” Was organized by the consulting and auditing company EY and FinteChile.

Guillermo Tagle, President of Creditcorp Capital; Manola Sánchez, director of BCI; Soledad Ovando, Deputy Public Affairs Manager at BancoEstado; Ángel Sierra, President of FinteChile; and Ariel Koch, EY Financial Industry Consulting Partner.

“The BancoEstado representative spoke about the need for a regulation that reflects industry best practices and is in line with our reality,” they said in the article in El Economista. According to her, it would be necessary to serve as a model for Chilean regulations, which have a sandpit with the participation of financial institutions in which they can experiment in a space regulated and monitored by an agency. “Our financial market needs competition and today we generate a very good level of fintech (technology and development) that is internationally recognized,” he said.

The director of BCI stated that legislation should prevent talent from fleeing overseas. “The entrepreneur will go to a place where it is easier for him to start a business, and since Chile has no contemporary regulation (…) he will go to a country that makes it easier for him (England) , Mexico etc) and the flight of the talent can be something that plays against us when we think about economic reactivation and the creation of a fintech ecosystem, a modular and proportional regime that takes into account the terms and conditions is required Make it easier and at the same time attract talent from other latitudes, “he said.

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