Regulators in Latin america face challenges to supervision of financial technologies

Despite the advances in the field of financial regulation in the hispano-American countries, there are still challenges major challenges for the implementation of regulatory policies of the platforms of financial technology known as fintech.

This is one of the main findings of a study of the Association of Banking Supervisors of the Americas (ASBA), in which participating central banks and other financial regulators in Latin america, including the Bank of Spain.

The study, Regulation for responsible innovation and competition in the financial sector, published at the end of last June, addresses the challenges and problems of implementation to the monitoring of products as systems of virtual banking, payment gateways, products, and services that involve cryptocurrencies, contracts and smart payment transactions to P2P, approximately twenty financial products.

One of the challenges for supervisory entities is the rapid evolution of the products, fintech, it raises the study, as contrasted with the extended periods of hiring and training staff to understand properly these products.

“The supervisors need to recruit staff in an open and transparent, with high analytical skills and technology. At the same time, the staff already has should be kept up to date. Equally, supervisory authorities should make greater use of technologies to drive efficiency and effectiveness, given the increase of data from incumbents and fintech. ”

Association of Banking Supervisors of the Americas (ASBA).

ASBA also refers to “the lack of mandates appropriate to enforce the protection of the consumer, when the fintech based in the foreign supplied goods and services across borders”, as it happens for example with the exchange houses of criptomoneda with headquarters in other countries. In this regard, the organization of regulators proposes that this lack of legislation should be countered “with greater cooperation among supervisory authorities”.

On the other hand, the study advised that it should incorporate “projects of financial education, both on their platforms of the internet and on their mobile applications, through traditional entities and Fintech”. Holds that should produce “behavioral change of culture in the marketing of products that protect the financial consumer”.

In the context of Spanish american, was notorious for the promulgation of the Law Fintech in Mexico in 2018, as reported at that time Breaking News.

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