By: Mario Ernst
We interviewed Claudia Sotelo, Head of the Financial Innovation Centre of the Financial Market Commission (CMF) to ask her about the benefits of the Fintech Law for customers and the impact we should expect in the Chilean financial industry and this is what she told us:
«The Fintech law is beneficial for users, because what it seeks is to update financial regulation by recognising in it the new business models that exist in the different financial services and that are based on technology. It also empowers users by recognising that we are the owners of our data and can have control over it by sharing it with those we want to offer us better financial services. In this way (from the CMF) we hope to increase competition between new and traditional players to reach different segments of people or SMEs, banked or unbanked, with better opportunities, at better costs and also improving financial inclusion.
This regulation clarifies and evens the playing field for the different technology-based financial service providers; this will allow them to improve competition, which goes hand in hand with innovation, and also allows them to look at how they can offer better services in the medium term. There are figures from the national productivity commission, which show that in recent years 90% of financial institutions have increased their investment in innovation and have invested in different types of cloud platforms and mobile applications, for example.
In our opinion, the CMF has led in an excellent way the process of implementation of the Law, generating consensus and listening to all industry players. We look forward to hearing more about the progress of the process.