In an era of rapid digital transformation, Latin America is witnessing a seismic shift in its financial landscape. The rise of Open Banking and Open Finance is not only revolutionizing how financial services are delivered but also redefining customer expectations. BBVA, a global leader in financial innovation, plays a pivotal role in this transformation, collaborating with regulators, fintechs, and non-financial partners to foster a more inclusive and efficient financial ecosystem.

Elevating Financial Services Through Seamless Integration and Regulatory Clarity

The Evolving Landscape of Open Banking and Open Finance in Latin America

The adoption of Open Banking (OB) and Open Finance (OF) across Latin America presents a mosaic of progress, with each country charting its unique course. Brazil stands out as a frontrunner, having implemented comprehensive regulations that cover both informational and transactional data. Meanwhile, countries like Argentina have adopted a market-driven approach, allowing for greater flexibility and innovation. In contrast, nations such as Peru and Uruguay are still in the nascent stages, exploring regulatory frameworks that could unlock new possibilities for financial inclusion.In this diverse environment, certain patterns emerge. Typically, one or two major banks lead the charge with robust OB offerings, while fintechs excel by providing a broader spectrum of services. This dynamic highlights the importance of collaboration between traditional institutions and innovative startups. As companies increasingly embed financial services into their platforms, they address the growing demand for seamless payment solutions, financing options, and enhanced customer experiences. BBVA's commitment to fostering this collaborative ecosystem positions it as a key player in driving forward the region's financial evolution.

Overcoming Challenges to Accelerate Progress

Despite the promise of OB and OF, several challenges impede their widespread adoption. One critical issue is defining the access framework—whether centralized or decentralized—and establishing trust mechanisms. Regulators must clarify who can participate and what compliance requirements are necessary to ensure secure and transparent interactions within the financial system. For instance, determining which entities will be affected by the regulation—traditional financial service providers or those embedding financial services into non-financial journeys—is crucial. Customers increasingly seek invisible finance, where financial services seamlessly integrate into everyday activities. Regulators should facilitate this by enabling easy access to financial services from non-financial platforms, thereby boosting innovation and convenience.Another significant challenge lies in defining the scope of data sharing and the associated consent processes. With Open Finance, the question of which data should be available and under what standards it should be shared becomes paramount. Balancing privacy concerns with the need for data accessibility is essential for building a robust and trustworthy financial infrastructure. By addressing these challenges head-on, Latin American markets can accelerate the implementation of OB and OF frameworks, ultimately leading to a more resilient and inclusive financial ecosystem.

Collaborative Innovation: BBVA’s Role in Driving Open Finance Forward

BBVA envisions a future where collaboration thrives across three dimensions: fintechs, other financial institutions, and non-financial partners. Through its Spark initiative, BBVA has successfully nurtured over 1,400 fintech clients, generating substantial credit volumes. This partnership model allows BBVA to leverage fintech innovations while providing startups with valuable resources and insights. Moreover, BBVA actively engages with regulators and industry associations to establish clear guidelines that balance innovation with security. By fostering regulatory certainty, BBVA ensures that financial transactions remain safe and reliable for customers.Non-financial partners also play a vital role in enriching the end-customer journey. BBVA collaborates closely with these partners to co-create solutions that address specific pain points and enhance overall customer experience. Leveraging partners' established customer trust can attract new client segments while delivering value to existing customers. Ultimately, BBVA’s collaborative approach underscores the belief that true innovation arises from combining banking expertise with partner insights to improve customer satisfaction and drive financial inclusion.

Regulatory Evolution and Leadership in LATAM

The regulatory landscape in Latin America is evolving rapidly to support the growth of OB and OF. Pioneers like Mexico introduced the Fintech Law, focusing on product information sharing. However, delays in second-level regulation have slowed progress. Conversely, Brazil has taken a leadership role with its comprehensive Open Finance regulations, covering a wide range of data types including customer personal data and transactional data. Other countries, such as Colombia, have enacted new regulations around Open Finance, setting clear requisites for third-party data recipients and establishing technical and security standards.Countries like Peru and Argentina are taking initial steps, hinting at the potential of OB as a national priority. Chile and Uruguay are also making strides, with Chile’s regulation set to take effect in 2026 and Uruguay expected to finalize its OB framework by the end of 2025. These developments signal a growing recognition of the importance of OB and OF in promoting financial education and economic growth. As more countries implement supportive policies, the region is poised to become a hub for financial innovation and inclusion.

Anticipating Trends and Enhancing the Financial Ecosystem

Looking ahead, several trends will shape the future of Open Finance in Latin America. Customer behavior is shifting towards the use of convenient, embedded financial services, often provided by fintechs catering to niche markets. Regulators must respond by clarifying authorized players and service types to ensure a level playing field. Technological advancements enable the creation of startups offering financial services without the burden of heavy regulation, emphasizing the need for clear responsibility frameworks.New participants entering the Open Finance space will further diversify the ecosystem. Establishing standards and regulations for data interchange and customer consent will be critical to maintaining regulatory clarity and fostering innovation. Financial institutions must invest in these ecosystems, collaborating with partners who own the customer journey to offer personalized services where, when, and how customers need them. By prioritizing customer-centric innovation and data security, financial institutions can significantly improve the financial services ecosystem in Latin America.