On November 6th, the National Agreement for Integral Development – a working group composed of public and private entities overseen by the Executive branch to design economic development policies – delivered a series of recommendations to President Sebastian Piñera. Of particular note was a proposal to promote technological innovation – as a means to enhance financial stability associated with lowered operational transaction costs and risks. The Executive branch is preparing a bill to update the regulatory framework of FinTech companies, to be presented in December. Piñera is expected to draw on the working group’s recommendations to refine this bill.

Additionally, the National Agreement for Integral Development has urged government to facilitate the use of risk capital and review the existing regulatory instruments in this area. Also they proposed moving ahead with a regulatory scheme for financial technology companies. This new framework would help equalize the risks and benefits associated with, and drive new ventures in, the FinTech market.

In connection with this, the working group stressed the need to facilitate the access of FinTech companies as a tool to increase financial inclusion, improve the competitiveness of the traditional system and reduce costs for financial services.