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).
Read more about open finance and find other important financial news with the Born2Invest mobile app.
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.
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 EL ECONOMISTA, 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
How Institutional Investors Feel About Impact Investing
Investors continue to face greenwashing when implementing impact investing. Among their key concerns are misleading or exaggerated impact claims (60%),...
GoodNews Launches a Crowdfunding Campaign on Crowdcube
In addition to the physical points of sale, GoodNews sells coffee online and has also launched a B2B division, i.e....
Coinbase Now Holds as Much Bitcoin as Satoshi Nakamoto, Arkham Reveals
Coinbase specifically holds a total of 947,755 BTC, according to Arkham's recent disclosures, which represents nearly 5% of all Bitcoin...
PharmaMar Increases Investment in R&D for Oncology by 23%
The company has confirmed that, as a result of its commitment to R&D in oncology, it has achieved a success rate...
What Is the Role of Fintech Companies in the Payments Ecosystem
The CEO of BIT2ME referred to the future of fintech as "good". However, he stated, "We live in a society...
Crowdfunding2 weeks ago
58 Crowdinvesting Platforms Authorized Under the New Regulation in Europe
Biotech4 days ago
Novo Nordisk Plans to Open a Tech Headquarters in Spain
Africa2 weeks ago
Morocco’s Bank Liquidity Deficit Seems to Stabilize
Impact Investing7 hours ago
How Institutional Investors Feel About Impact Investing