Open banking is gaining strength in Latin America, with the help of technology services are becoming more friendly and innovative, this creates better opportunities for Open Banking. With its growth, Apis (Application Programming Interfaces) have also been implemented, which store and share customer information with providers in a private and secure way.
Open banking in Latin America has been a progress to financial services, since it allows other entities such as Fintechs to participate, giving access to transactions and facilitating financial democratization. However, let’s not forget that this is a relatively new model, so there is still a lot of work to be done, especially taking into account that in most of Latin America there is still a large unbanked sector.
Digital banking must therefore create processes of adaptation to traditional banks so that they can operate together and users can participate from both channels. There are many benefits offered by Open Banking to users, one of them is bank loans, which used to take many days to authorize the loan, but today with technology and the analysis of applications, it is a matter of seconds for your application to be approved.
Financial services are also becoming more efficient, since by knowing the customer’s data better, personalized attention is provided, offering products that are based on their needs. And of course, since there is a wide technological network, the data becomes more secure, the interface and identification of users is improved.
As we can see, open banking offers multiple benefits, and Latin America being the fertile ground for fintechs due to its uncompetitive banking systems and its large and growing number of fintechs, a healthy competition with banks will be promoted in order to take advantage of and improve the infrastructure of financial services and at the same time there will be greater participation and an appropriate banking culture will be fostered.