Increased demand for digital financial services has led most fintech and payment professionals (84.3%) believe that 2021 will see a surge in the adoption of Open Finance models in Latin America.
This growth will be driven by several factors such as a more favourable regulatory environment (particularly in Mexico and Brazil) and more visibility about its benefits among end-users and companies.
Belvo surveyed over 150 professionals in the Latin American fintech sector and interviewed nine industry and regulatory experts, with the aim to analyse the trends that will impact the adoption of Open Finance models across the region in 2021.
The results of this report point at an accelerated demand for digital financial services in Latin America. The need for social distance has pushed millions of users to shop online, pay their bills, or access their banking accounts digitally for the first time. And experts believe that these new digital habits will remain; 96.4% think that COVID-19 will increase the digitalisation of financial services. Almost half of them (47.3%) think that payment providers will be the more affected segment of the industry.
While 38.4% consider that regulation remains the biggest challenge, 90.2% think that companies should get ahead of it and start making moves for its implementation. Technology providers, such as Open Finance API platforms, will help build the necessary infrastructures to make it a reality.
The growing maturity of the fintech ecosystem during 2021 will also lead to the development of new and more sophisticated use cases based on Open Finance. Beyond accessing raw data, companies will be able to add an extra layer of intelligence to their businesses to improve decision-making thanks to data enrichment solutions; as well as offering instant payment solutions through APIs directly within their apps.
Lending companies will be the ones that will benefit the most from these new data-sharing models, according to 40% of professionals, followed by firms specialised in credit scoring (22.3%), and personal finance management tools (18.8%).
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