It is estimated that nine out of 10 Latin American banks have begun to implement open finance strategies, according to the document “Agenda fintech rumbo a 2025”. This technology allows data to be shared among financial institutions through the use of application programming interfaces (APIs).
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In this context, financial technologies see the opportunity to collaborate with banks through open finance
In the case of Syncfy, it indicated that open banking has served as a collaboration bridge with BBVA bank, to initially provide tax information on its users.
“It is impressive what they are doing in Latin America in terms of open finance, particularly in Colombia and Brazil, in Mexico it is very possible that banks will also begin to implement open banking,” said Claudio Montoya, director of infrastructure at Syncfy.
According to what Montoya explained, the alliance consists of facilitating the open fiscal, through the download of the existing Digital Tax Receipt by Internet (CFDI), which is now in its 4.0 version, and the Tax Administration Service (SAT) set April 2023 as the deadline for its entry into force.
“Through technology, we make a connection to the SAT, for which it is very important to have the client’s consent, they provide us with their credentials, we go, download the information and through a standardization process, we deliver it, so that with a single API you can download CFDI, declarations or compliance opinion,” explained Montoya.
The executive emphasized that in order to enable this technology, it is essential to have the express permission of the user, in compliance with the rules that regulate the operation of this technology, personal data protection, and the SAT.
The above becomes relevant since last week the Supreme Court of Justice of the Nation (SCJN) invalidated the power of the SAT to disclose to third parties personal information that allowed the verification of the identity of the users of the advanced electronic signature (FIEL).
From the SCJN’s perspective, the verification is directly related to biometric data and sensitive information, and the Federal Tax Code does not have sufficient elements to prevent it from being disclosed to third parties without the consent of the holder.
On the other hand, the Law to Regulate Financial Technology Institutions, also known as the Fintech Law, establishes that the information that may be shared may only be used for the purposes strictly for which it is intended.
Cooperation and regulation of open finance
More collaboration is expected between financial technology companies specialized in this technology and banks, as mentioned by Syncfy; however, regulation is still a fundamental part for this to happen.
Although what is established by the Fintech Law in Article 76, regulates open finance there is a lack of secondary rules for all regulated entities, since for the moment only the corresponding ones for clearing houses and Credit Information Companies have been published.
“We observe that the regulation has been advancing, for the topic of APIs, they have been consulting banks, and they have involved teams from the UK so that pieces are implemented in the best way, it is a well-planned process,” commented Gerardo Treviño, CEO of Syncfy.
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First published in EL ECONOMISTA, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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