Open Finance is a financial revolution because of all of the benefits it represents for the credit industry and its users. Learn more about its benefits and everything it has to offer.

Open Finance arose from Open Banking, in which banks exchanged financial information about their customers, and it later evolved into a network that included not only banks, but also other credit-related entities. This was due to the solution, which represented the ability to centralize data, services, and formats in a single location.

The rise of open finance in Latin America

The development of financial technologies, or fintech, drives the growth of open markets, but in Latin America, an additional motivator is the potential for growth, especially given that it is estimated that more than 2,000 fintech exist in the region, with the potential to serve a market of approximately 650 million customers.
All of this indicates that they are on the right track, but more financial inclusion in a market that is expected to grow significantly in the coming years is still required.

Mexico Fintech

Mexico is one of the most advanced countries in the field of fintech companies, with a regulatory framework in place, the Fintech Law.
According to statistics, the number of startups of this type increased by 16% by 2021, reaching 512. To this can be added the 27 authorized digital financial platforms and the 31 condicionadas by the Comisión Nacional Bancaria y de Valores (CNBV), indicating that there is still some requirement for them to obtain full authorization.

This opens up a wide range of opportunities for financial institutions and their customers in the field of fintech in Mexico.

We will look at the reasons why financial technologies are growing and becoming more popular in the industry.

How do Open Finance Initiatives boost regional innovation?

• First and foremost, they encourage the opening of bank accounts or credit lines in order to use various financial products.

• Financial institutions can gain access to a comprehensive view of their clients’ finances in order to conduct an objective credit analysis and better understand them.

• For customers, the ability to compare service providers allows them to choose the one who best meets their needs.

• With a large variety of customer information as a foundation, products and advice can be completely personalized and much more appealing.

• Financial institutions can reduce operational costs and reflect this in the prices of their products and services.

• By understanding customer behavior, financial advisors can adapt and create new financial products.

• The use of APIs simplifies financial processes and analysis.

An API as a solution for Open Finance

The use of interfaces to collect data from financial institution clients and their tax information is part of the use of fintech and Open Finance.

For example, CRiskCo’s software is a technological solution for advisors that provides direct communication with the tax and accounting systems in order to obtain a detailed and prospective credit analysis, which can even calculate the risk of potential clients and provide a quick resolution with tailored proposals.

Test the CRiskCo’s API and get a firsthand look at the benefits of Open Finance.