James Bosworth, author of the Latin America Risk Report: “Chile’s new fintech law provides a set of clear rules to a sector that has been largely unregulated or forced to operate under old regulations that are more applicable to legacy banks. In the sense that clear rules can help guide innovation, the sector is quite pleased to have a framework. Chile’s traditional banking sector is also generally pleased, though it would prefer a slower transition period, both to monitor for potential weaknesses in the new framework and so it can adapt to the growing competition from the fintech sector. The most important aspects of the new law include a set of rules for data sharing between the old and new banking sectors as well as requirements for the Unidad de Análisis Financieros (UAF) to improve its security measures. The timing on this new law is important as Chile’s slowing economy, rising inflation, increasing defaults on private loans and weakening peso all present potential challenges to the banking sector in the…”