Welcome back to the Latin America Weekly newsletter. In this issue: open banking, Ecuador’s push to join the Pacific Alliance, and controversy in Chile’s constituent assembly.
How will open banking change Latin America’s financial landscape?
Launched less than a year ago, open banking is already changing what it means to use financial services in Brazil. Latin America’s biggest country has what is now considered the largest open banking system in the world in both size and scope. Mexico, Colombia, Chile, and Peru are all studying their own open banking alternatives, and this may be crucial to foster economic growth during a time of economic recovery.
- Open banking allows users to share banking, transaction, and other financial data with financial institutions and third-party service providers, making room for new services and products.
Why it matters. Open banking seeks to boost competition in a region with highly concentrated financial systems.
- Equipped with more reliable data, companies are able to design products better suited to consumers, increase credit availability, and integrate resources previously tied up in informal, paper-based transactions into the digital economy.
Legal status. Each Latin American country is at a different stage in terms of implementing open banking rules.
- Mexico...