The Colombian government, led by the Ministry of Finance, recently unveiled a new draft decree for the Mandatory Open Finance System. This marks a significant milestone in Colombia’s journey towards regulating Open Finance, an initiative that began taking shape in 2022. The updated draft signifies a shift in approach, aiming to create favorable conditions to expedite implementation and enhance its impact on financial inclusion.
The decree introduces fresh provisions regarding the types of data that can be shared within this system among its various stakeholders. It emphasizes sharing information related to deposit products, insurance, credit, and investments, as well as details about products and services offered by financial entities. This access to comprehensive data not only enables institutions to tailor their offerings to individual consumer profiles but also empowers users by facilitating informed comparisons and choices aligned with their needs.
Gabriel Santos, president of Colombia Fintech, emphasized the significance of mandatory compliance as a step in the right direction to overcome implementation barriers. He highlighted the importance of establishing clear rules in the final version of this regulation to foster competition within the financial sector by encouraging participation from emerging industry players such as fintech companies. Santos stressed the urgency for Colombia to prioritize empowering financial consumers with superior products and enhanced information availability.
Colombia stands alongside other Latin American and global nations at the forefront of developing Open Finance frameworks that promote financial inclusion, innovation, and competitiveness within the financial sector. Regulatory frameworks play a pivotal role in shaping these systems by addressing essential aspects like safeguarding consumer data, regulating innovative use cases, and integrating new players—particularly fintech firms—that play a vital role in driving progress.
As expertly pointed out by Gabriel Santos from Colombia Fintech, “We highlight mandatory compliance as a step towards unblocking system implementation in our country.”
The evolving landscape of Open Finance regulation underscores its crucial role in propelling financial inclusion efforts forward. By embracing open finance principles through robust regulatory frameworks like those being championed in Colombia, nations can effectively expand access to financial services while fostering healthy competition and innovation within their markets.
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