Baker McKenzie’s Latin America Financial Institutions (FI) Industry Group held the first session of Fintechfest, a series of webinars that aims to provide insights on key market trends, opportunities, and legal and regulatory challenges to guide financial institutions and technology companies on a range of issues in the rapidly evolving Fintech sector.
Session 1: Building the DNA of a Successful Fintech Business in Latin America
Dan Cohen, CEO and founder of Tienda Pago, provided an overview of the company’s business model, objectives, strategies, and other business-related considerations.
From a legal perspective, based on his experience, there is a misconception in treating Latin America as ‘one region’ as both legal and commercial environments are different, specific to each jurisdiction. Even if the laws appear similar, the way to follow or comply with such laws may be different.
One other observation in Latin America is that regulations are usually playing catch-up, and behind by at least one to two years compared to other comparable jurisdictions. This, he says, puts fintech players at a relative disadvantage because nobody wants to get into conflict with existing regulations.
Baker McKenzie lawyers shared their experiences in their respective jurisdictions, as well as their general observations around regulatory developments in the region. One of the biggest opportunities for fintech in Latin America is achieving financial inclusion. In Mexico for example, around 36% of the population have bank accounts but the rest are able to access financing only through informal channels. Financial inclusion is one of the major challenges in the region, and this is where fintech players may come in. Fintech players also have the flexibility to go into hard-to-reach markets, specifically those without access to banks and other financial institutions.
The speakers also noted that there is a need for regulation that allows innovation in financial products and services, but at the same time, promotes competition. New players, therefore, are encouraged to work with their respective local government entities in order to create a sound ecosystem that enables startup players to thrive and compete with more established financial institutions, particularly in the provision of new offerings and services.
Other major topics discussed during the session include licensing, data privacy, and cybersecurity. Companies are encouraged to review their cybersecurity policies thoroughly, including for their partners and third-party vendors in order to ensure that all parties are compliant with existing regulations in their respective jurisdictions, and other cybersecurity breaches are prevented.
The full session included speakers from the Latin America FI team – Juan Carlos de los Heros (Peru), Gabriel Gómez Giglio (Argentina), Ricardo Trejos (Colombia), Luis Ernesto Marin (Peru), Marie Roschelle Quintero (Venezuela) and Alfonso Martinez-Bejarano (Mexico).
View the recording of the webinar. (Password: xNgbZ29&)
Session 2: Is Latin America ready for a cryptocurrency boom in 2021?
You can register for the second session Is Latin America ready for a cryptocurrency boom in 2021? The session will feature Alfonso Monroy, General Counsel of Bitso – a platform to buy, sell, and use cryptocurrencies with operations in Mexico, Argentina and Brazil. Founded in 2014, Bitso is the first cryptocurrency platform in Latin America to be regulated and the sixth globally to obtain a license from the Gibraltar Financial Services Commission (GFSC).