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Chile is emerging as a regional leader in Latin American fintech, moving beyond traditional open banking to incorporate data sharing from credit institutions, asset managers and insurance companies. This shift is poised to transform how financial information is shared, offering institutions new opportunities to develop personalised products and services.
The country enacted Law 21.521, or the Fintech Law, in January 2023 to establish an open finance system. Many of its provisions took effect in 2024, but several of the key requirements, including the Open Financial System (OFS), will take hold in 2026, redefining data-sharing practices and market competition.
Financial institutions should prepare accordingly or risk enforcements such as financial penalties and suspended registrations in one of the fastest-growing open banking jurisdictions in Latin America.
The Open Financial System
In July 2024, Chile’s Financial Market Commission (CMF) published General Rule No. 514, which regulates the OFS. The OFS becomes fully effective on July 4, 2026, making immediate implementation essential.
These regulations aim to create an environment where individuals and businesses can access tailored and cost-effective financial products, as their data can be shared with a wider range of lenders and service providers. Banks and peer-to-peer (P2P) payments providers can form strategic partnerships to reach new market segments and elevate user experience.
Once in effect, account holders with financial institutions offering prepaid cards will be able to instruct service providers to transfer funds to bank accounts. This enables seamless digital wallet transfers, faster payments, and deeper integration between digital asset rails and traditional banking infrastructure.
Towards uniform financial inclusion
Fintechs can leverage the OFS to access a wider range of customer data, enabling more personalised products and direct integration with banks. Rigorous API development and testing will be critical to meet the July 2026 deadline.
Financial institutions should establish user-friendly, transparent mechanisms for obtaining and managing customer consent while prioritising secure data storage. Firms that modernise these processes early will gain consumer trust, demonstrate regulatory readiness and accelerate product rollout.
Although the upfront costs of implementing these changes and fortifying blind spots may be high, proactive compliance will position firms as trusted leaders in Chile’s open finance market.
Banks should ensure interoperability, so that systems can integrate seamlessly with APIs and new financial products, enabling rapid deployment of innovative services and reducing integration delays.
By addressing regulatory requirements proactively, financial institutions operating in or entering Chile’s market can transition smoothly into the new open finance era. Strong compliance practices will also enable firms to innovate more confidently and meet consumer demands.
Maintaining compliance while seizing opportunity
The CMF’s OFS initiative strengthens Chile’s position within Latin America’s open banking landscape but also increases regulatory burdens. Early compliance will be a key competitive advantage for new and existing market entrants.
The OFS is expected to foster greater competition and innovation by requiring explicit client consent, enforcing API standards and mandating comprehensive security safeguards.
Firms that treat open finance compliance as a strategic opportunity will be best placed to capture growth in Chile's evolving financial services market. Delayed action risks both regulatory sanctions and competitive disadvantage as early movers establish themselves as market leaders.
