How Brazil, Mexico, Chile, and the region are driving a more open, competitive, and inclusive financial ecosystem powered by data and innovation.
Latin America is experiencing a decisive moment in its financial evolution. What just a few years ago seemed like a futuristic concept — the ability to securely and consensually share banking data — has now become public policy, technological innovation, and a driver of competition. This structural shift has a name: Open Finance.
Across the region, the principle is simple yet powerful: people choose who can access their financial information. This new logic is fueling greater competition, more personalized products, and genuine financial inclusion in historically unequal markets.
Brazil, Mexico, Chile and the Leading Edge of Open Finance in LatAm
Brazil: The Most Advanced Model in the Region
Brazil took the first major leap in 2021, when its Central Bank implemented a phased regulatory framework enabling the secure exchange of accounts, payments, insurance, and financial products through APIs.
Today, millions of users can:
- view all their accounts in a single app,
- request faster and more competitive loans,
- access insurance tailored to their real financial profile.
Brazil’s model is now compared to the most advanced ecosystems in Europe.
Mexico: A Regulatory Pioneer
With its 2018 Fintech Law, Mexico paved the way for common standards between banks and fintechs. As Beatriz Durán from Syncfy emphasized, the challenge lies in “grounding real use cases and defining clearer rules” to promote open payments and more competitive services.
Chile: A Modern and Scalable Framework
Chile’s Fintec Law No. 21,521, approved in 2023, along with the 2024 regulation of the Open Finance System (SFA), positions the country as one of the region’s most robust regulatory environments.
Colombia, Peru, Ecuador and Other Emerging Markets
These countries are advancing through public consultations and regulatory development, building a foundation to integrate into the broader Open Finance ecosystem in Latin America.
Key Benefits of Open Finance for Latin America
According to the IDB/FDATA study Open Finance in Latin America and the Caribbean, only five countries currently have regulations issued or under implementation. Yet the benefits for a region marked by low inclusion and high financial costs are substantial:
🔹 Greater Banking Competition
Banks and fintechs compete under similar rules, translating into better rates, lower fees, and more efficient services.
🔹 Hyper-personalized Services
Data analysis enables loans, insurance, and investments based on each user’s real financial behavior.
🔹 Higher Financial Inclusion
People without traditional credit histories can demonstrate payment behavior through external platforms.
🔹 Embedded Finance and Integrated Experiences
Apps, retailers, and digital platforms can incorporate financial services directly into the user experience.
Major Challenges: Privacy, Interoperability and Trust
The model requires progress in:
- clear consent and data protection,
- robust cybersecurity,
- common technical standards,
- governance and institutional capacity,
- trust-building and financial education.
As Raúl Nava Salazar (IFC DIGILab) stated, the goal is to allow third parties to access data “safely and reliably,” always with user consent.
Where Is Open Finance Headed in Latin America?
Experts such as Mastercard highlight that although Mexico was a regulatory pioneer, Brazil leads in real-world adoption. Regulatory fragmentation remains a major challenge: without shared standards, cross-border innovation could stall.
But the direction is clear:
Open Finance is not a technological trend — it is the future of financial services in Latin America.
What today feels innovative — an app that consolidates accounts or an instant loan — will soon become part of everyday life for millions across the region.
