Representatives of the fintech industry, banking, and regulators highlighted the urgency of moving towards a cybersecurity and data protection law, at the event “Fintech disruption in pandemic: one of the best surfers of the COVID-19 wave?,” organized by the consulting and auditing firm EY and FinteChile.
According to the results of the study “Fintech in Chile” presented on the occasion, 60% of the companies in the sector saw their number of clients increase during the pandemic, being one of the industries that benefited from the technological progress driven by the health crisis. Along these lines, 52% stated that their revenues increased, 84% consider that the general public is open to the adoption of this type of solutions, and 46% believe that public institutions and regulators are closed to this.
If you want to find more details about the development of the fintech sector in Chile and the rest of the world, download for free the Born2Invest mobile app. Our companion app brings you the latest business headlines for you to stay on top of the market.
What the fintech sector needs to further develop
“Fintech companies continue to strengthen and consolidate as part of the local financial industry, showing sustained growth of 2 or 3 digits in clients. They also contribute to democratization and innovation in the sector. The great challenges are still how to achieve the investments and capital that will allow them to grow and expand, and to strengthen the continuous work with the traditional financial industry, which may be influenced by new regulations such as Open Banking,” explained EY’s associate partner of Technology Consulting, Mauricio Martínez.
Along the same lines, in terms of legislation, the general director of Market Conduct Regulation of the CMF, Patricio Valenzuela, said that “the great challenge for regulators is precisely to try to generate proportional regulations that are more flexible and that can arrive in a more timely manner. From my point of view, self-regulation and the agreements reached between the actors in the financial sector will be much more timely and efficient than regulation.”
For his part, the president of the Association of Banks and Financial Institutions (Abif), José Manuel Mena, advocated that the regulator should have more resources so that technology does not come before legislation and that it is necessary to have laws that protect this sector. “It is a shame that we do not have a cybersecurity or data protection law, because all the actors who want to be in the financial market (in its broad sense), we must have a minimum floor and basic care that we must protect,” he said.
This was precisely the point highlighted in the study as one of the priority areas for regulation: cybersecurity and data ownership and privacy (22% each point) are in the Top-3 of the list, only behind Open Banking (44%).
In relation to IT security, the Ministry of Finance’s consultant on Fintech and Open Banking, Ana María Montoya, stated that the essential point for the regulator should be that “information security requirements should be proportional and commensurate with the risks. (…) Regulation must be adapted to increase competition, service quality, innovation and coverage.”
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in Diario Concepcion, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Cost of Natural Gas Rises Globally, Says Acclaim Energy Mexico
The drop in natural gas production is partly the consequence of the cuts in oil production, given that a good...
Adofintech Celebrates Progress in Strengthening the Fintech Ecosystem
At the beginning of the year, Adofintech developed a work plan made up of four strategic guidelines: to promote the...
SeniorDomo Opens its Capital to Invergy B Side and Archipelago Next
91% of the capital will be used for marketing the company, while the remaining 9% will be used to improve...
REE Reflects on ESG Recovery at its 2021 Sustainability Workshops
The Red Electrica Group is initiating a new line of action in four major critical areas. The first is the...
Nigeria Launches eNaira After One-Month Delay
CBDCs work just like the money people see in their bank accounts. The central bank will have complete control over...
Cannabis2 weeks ago
ArgenCann Will Be Part of Expo Cannabis 2021
Business2 weeks ago
Augmented Reality Investment Is Heating Up: Magic Leap, XRApplied
Featured2 weeks ago
Cryptosmart, the New Fintech Platform to Buy and Sell Cryptocurrencies, Was Launched
Cannabis2 weeks ago
Mexican Senators Say Cannabis Legalization Would Generate Employment and Will Put a Strain on Drug Trafficking