CHILE Trends and Developments Contributed by: Alvaro Moraga Fritz and Sebastián Moraga Nazar, Moraga & Cía.
The New Open Finance System in Chile In the authors’ view, the recently enacted regula - tion governing the Open Finance System (SFA) represents the most significant advancement in Chile’s banking and financial regulatory frame - work. This development heralds a paradigm shift in the management of financial data, fostering an environment conducive to the growth and mod - ernisation of the financial industry. The Fintech Law encourages innovation and facilitates the entry of new players into the mar - ket, while the General Banking Law ensures the solidity and reliability of traditional financial institutions. This carefully crafted balance ena - bles both sectors to adapt to market demands, offering consumers a broader range of financial services and promoting true financial democ - ratisation – a vital element for the progress of individuals, businesses and the country at large. Brazil’s Central Bank initiative, PIX, and its trans - formative impact on the financial ecosystem serve as an inspiring example of the potential such systems hold. General Overview of the SFA The SFA empowers consumers to share their financial information – subject to their explicit consent – with various financial service provid - ers. This secure data exchange occurs through remote and automated interfaces known as application programming interfaces (APIs), adhering to strict security protocols and the requirements established by the Fintech Law and General Regulation No 514 (NCG 514). Key Features of the Fintech Law Promotion of technology-driven financial services The law establishes a comprehensive framework to foster financial services provided through
technology, clearly defining the responsibilities of regulated service providers. Regulatory requirements Providers must: • register in a public registry; • obtain prior authorisation to operate; • fulfil transparency obligations to the CMF and the market; • meet personal suitability standards; • provide guarantees for operational reliability and potential damages; and • comply with cybersecurity and data protec - tion regulations. Specifics of the SFA The Fintech Law requires regulated financial institutions – including banks, payment card issuers, insurance companies and fund manag - ers – to participate in the SFA, allowing users to share their chosen information with other par - ticipants. Additionally, the law permits non-regulated enti - ties to voluntarily register in the SFA, enabling them to offer financial services, particularly: • data-based services – services utilising client information obtained from financial institu - tions; and • payment initiation services – services facilitat - ing direct transfers from client accounts to third parties. Implementation Timeline In July 2024, General Regulation No 514 (NCG 514) was published, detailing the SFA’s structure across five key pillars and outlining a phased implementation schedule. This timeline is based on each participant’s role, with full operational capacity targeted for 2026.
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