Chile to present fintech bill in mid-2020

Chile’s Treasury Minister Ignacio Briones has announced that a long-anticipated fintech bill will be presented to congress in mid-2020, an announcement that was welcomed by the industry association, Asociación FinteChile.

“For the ministry it is a priority to promote the creation of more and better fintech innovation, as we believe they make a significant contribution to increasing financial inclusion, the creation of jobs and greater competition and cost reduction in financial markets, among other positive effects,” Briones (pictured) said. 

He said his miistry is drawing up, together with financial sector regulatory authorities, a legal framework that will bring juridical certainty to the different protagonists in the sector, to protect consumers and public faith in capital markets, while prmoting entrepreneurship and competition. 

Ángel Sierra, executive director of FinteChile, was quoted as saying by local media that the proximity of the bill’s presentation shows the government is prioritising the acceleration of public policies to grow the fintech sector.

“The potential of the Latin American fintech market is enormous,” Rodrigo García de la Cruz, CEO of Finnovating, was quoted by media as saying.

But so far Chile has lagged behind other Latin American countries in terms of investment in the fintech sector.

The Latin America fintech sector recorded investment of $2.66 billiion from private equity (PE) funds in 2019, according to Finnovating, of which Brazilian fintech companies received the largest share, of $1.34 million, or 70 per cent of the total, followed by Mexico, with $396 million, or 20-6 per cent, and Argentina, with $152 million, or 8 per cent. Chile was ranked fifth in terms of PE investment, begind Colombia, with $6.5 million.