Fintech 2025

PERU Law and Practice Contributed by: Luis Ernesto Marín and Andrés Kuan-Veng, Rubio Leguía Normand

2. Fintech Business Models and Regulation in General 2.1 Predominant Business Models According to the 2024/2025 Fintech Business Guide published by EY, the most predominant fintech verticals in Peru are payments and remit - tances, lending, Fintech as a Service (FaaS), and financial management. These sectors have experienced significant growth due to the increasing demand for digital financial solutions, the expansion of financial inclusion initiatives, and the evolution of regulatory frameworks. Lending platforms have expanded as individuals and small businesses face challenges accessing credit from traditional financial institutions. The adoption of alternative credit scoring methods and digital onboarding has streamlined the loan approval process, enabling greater access to financial services. Lending platforms have seen the most sub - stantial growth within Peru’s fintech ecosys - tem, representing nearly 25% of all fintechs in the country, according to Statista. This expan - sion has been driven by the financing needs of individuals and small businesses that struggle to access credit from traditional banks. How - ever, despite this growth, over 40% of Peruvian fintechs reported annual revenues of less than USD500,000 in 2023, indicating a landscape still dominated by smaller players. The use of open finance, APIs, and cloud computing has been instrumental in shaping the industry, with nearly half of fintechs leveraging these technologies, while AI adoption is also rising, with 30% of fin - techs integrating it into their operations. Foreign exchange services remain a key part of the fintech ecosystem, facilitating digital cur - rency exchanges and offering competitive rates

loans, authorities such as Instituto Nacional de Defensa de la Competencia y de la Protec- ción de la Propiedad Intelectual (INDECOPI) and the SBS may introduce stricter consumer protection measures, requiring enhanced KYC and fraud prevention mechanisms. Recently, a bill has been introduced to regulate the concept of the digital consumer, aiming to establish clearer protections for individuals engaging in financial transactions through digital platforms. • Potential Fintech Law implementation – dis - cussions continue around a comprehensive Fintech Law, which would provide a more structured framework for the industry, aligning with international standards and addressing regulatory gaps. Integration of Artificial Intelligence in Fintech AI is increasingly being incorporated into finan - cial services and fintech products in Peru. Areas where AI is gaining traction include the following. • Fraud detection and risk management – AI- driven machine learning models are being used to detect fraudulent transactions in real time and identify suspicious activities. • Personalised financial services – AI-powered chatbots and virtual assistants are improving customer interactions by providing instant support and financial advice tailored to user behaviour. • Credit scoring and alternative lending – fin - tech lenders are using AI-based credit scoring models to assess borrowers’ creditworthiness using alternative data sources, expanding access to credit for underbanked populations. • Regtech solutions – AI is also playing a role in regulatory compliance, assisting financial institutions in automating KYC/AML checks and ensuring adherence to evolving regula - tions.

622 CHAMBERS.COM