- Uruguay unveils its roadmap toward Open Finance: Cybersecurity, collaboration, and protection of personal and financial data among key factors
- Fintech law in Chile: companies have until february 2025 to apply for specific operating licenses
Uruguay’s move toward open finance: a key initiative by the central bank of Uruguay (BCU)
The advancement toward an Open Finance system in Uruguay is one of the most significant initiatives by the Central Bank of Uruguay (BCU) in its financial modernization strategy.
The goal is to create a system where users have greater control over their financial data and can securely share this information with various institutions, fostering the creation of personalized financial products and greater economic inclusion in the country.
The BCU has already launched a roadmap outlining a series of steps and objectives for implementing the Open Finance system in Uruguay. Key elements include cybersecurity, the protection of personal and financial data, and governance that coordinates collaboration between financial institutions, regulatory bodies, and technology companies. This collaboration is essential to ensure trust and security in data sharing, which will allow users to access a broader and more personalized range of financial products.
The implementation of Open Finance will occur in several stages. In 2024, the BCU plans to focus on system governance and the drafting of a bill to regulate this open financial ecosystem. By 2025, the plan is to begin introducing practical solutions, such as payment systems and data transfer mechanisms. In the following years, between 2025 and 2026, the focus will shift to the mobility and accessibility of information, enabling users to manage their personal finances more efficiently by centralizing their data in one place.
This initiative follows international best practices and is aligned with Open Finance models in other regions of the world, such as Europe and the United States, where financial data openness has spurred competition, innovation, and diversification in the financial sector. For Uruguay, Open Finance is expected to not only enhance the efficiency and security of transactions but also promote broader financial inclusion, allowing individuals and businesses to access services tailored to their needs.
Fintech law in Chile: a regulatory deadline approaches
In Chile, fintech companies face a deadline to meet the requirements of the Fintech Law.
Fintech regulation in Chile has made significant progress with the enactment of the Fintech Law (Law No. 21,521), which establishes a regulatory framework that promotes innovation while ensuring a secure environment for digital financial services. Published in 2023, this law is managed by the Commission for the Financial Market (CMF) and focuses on creating a fintech ecosystem that fosters competition, financial inclusion, and consumer protection.
One of the key aspects of this law is the requirement for all fintech companies to officially register with the Financial Service Providers Register and obtain specific authorizations for each service they offer. Companies have until February 3, 2025, to complete this process, except for investment advisers, who must register by February 3, 2024. This registration framework is complemented by the General Standard (NCG) 502, which outlines the registration requirements and operates under a flexible system that allows adjustments without the need for new legislative reforms, thus keeping regulation in line with the technological evolution of the sector.
Additionally, the law promotes an Open Finance system, a model similar to Open Banking that allows users’ financial data to be shared securely between different entities, with their consent. The implementation of this system is expected by mid-2024, at which point the CMF will publish the specific rules. This will pave the way for consumers to access more personalized and competitive financial services.
Regarding virtual assets and cryptocurrencies, the Fintech Law also establishes specific regulations for their transaction, custody, and intermediation under the supervision of the CMF, positioning Chile as one of the first countries in the region to regulate this area. This regulatory framework aims not only to attract more investment and foreign companies to the Chilean market but also to consolidate Chile as a regional fintech hub.