The Argentine financial market will begin in July 2023 to take firmer steps towards Open Banking. The objective, as it happens in Europe or even in some Latin American countries, is for the client to have full management of their accounts and their credentials to be able to transact.
In this spirit, the scheme known as ‘immediate pull transfers’ will be launched with pilot tests, which have already been approved by the country’s central bank. Some fintech companies such as Mercado Libre, Ualá, and Personal Pay will participate in this first stage, together with a dozen leading banks. They will involve a small group of clients to carry out the first operations and then gradually expand them.
For example, in a fintech account one can enter the data of another own account in a bank (registering the CBU or the alias). From that same place, the confirmation of the credentials will be requested only once. To do this, a window will open that will ask for confirmation, requesting the bank code in question.
The system will validate the transaction in seconds, after which the person will be enabled to transfer funds from that bank account, always operating from the fintech app.
The central bank defines ‘immediate pull transfers’ as ‘requests or requests for funds that allow the immediate accreditation of funds by debiting the account -at sight or payment- of the client receiving the request and with prior authorisation or consent. in the account of the requesting client’. When the system is set up, it would start with transfers between its own accounts and then move on to this scheme described by the Central, that is, transfers between third parties but generated by the recipient of the funds.
Of course, the transaction can also be done in reverse, that is, adding the credentials in a bank and transferring money from a fintech.
This is a first step that in practice replaces Debin, which never worked properly. On the other hand, something that stands out in entities such as the BCRA is that with ‘pull transfers’ the transaction cannot be appealed and is considered final, reducing fraud.
This would be the first step for the full implementation of Open Banking, but then the options that open up are almost endless, allowing the client to transact autonomously with the different accounts they have in the financial system. Thus, one can choose, for example, to invest in common funds of an entity directly by applying money from another own account of a third institution.
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