On May 4, the Central Bank (BC, for its acronym in Spanish) and the National Monetary Council (CMN, for its acronym in Spanish), issued a joint resolution, defining the rules to implement Open Banking nationwide. The new measure is expected to be implemented gradually from November 30, 2020, with full implementation planned by October 2021. Access the regulations by clicking here and here.
The Central Bank began the process to regulate the Open Banking system, considering it “an important step towards the digitalization of the financial system”. The new regulation allows for the standardized exchange of data and services with prior client consent, allowing financial institutions, payment institutions and other institutions authorized to operate by the Central Bank.to open and integrate systems.
The gradual implementation process is composed of the following phases:
- Phase I: Public access to data from institutions participating in Open Banking on service channels and products and services related to cash deposit or savings accounts, payment accounts or credit operations.
- Phase II: Exchange of client and representative registration information between participating institutions, as well as of client transaction data on products and services related to phase I.
- Phase III: Sharing the payment transaction initiation service among participating institutions; and
- Phase IV: Extending the scope of data to cover, inter alia, foreign exchange transactions, investments, insurance and open supplementary pension, both for publicly accessible data and for data on transactions shared between participating institutions.
The premises of the Open Banking model are that the individual or corporate client must own their personal data and that their experience of the application process should be “agile, secure, accurate and user-friendly”, through the electronic channels of the institutions.