LATAM-Banks per Countries-PART 3

LATAM Breaks Through: The Visionary Banking Shift You Need to Watch

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Picture this: A Mexican ecommerce startup tracks every peso flowing in and out in real time—and shares that data securely to unlock fast loan approvals. In Brazil, a savvy online shopper switches banks in seconds—no paperwork, no hassle. Meanwhile, in Chile, a gig worker checks retirement savings and compares insurance quotes, all in one dashboard.

These aren’t just imagined scenarios. They show how Open Banking is breaking barriers and reshaping financial experiences across the region.

LATAM is fast becoming a launchpad for financial innovation. That’s why we’re taking you on a journey through the region’s most exciting open finance breakthroughs. From Mexico’s agile ecommerce pioneers to Brazil’s seamless digital banking platforms and Chile’s integrated financial apps, we’ll spotlight the innovators driving change. Along the way, you’ll gain expert insights to help shape an API strategy that rides the wave of progress sweeping the region.

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Digital Doors Open Wide: Empowering the Unbanked 

It’s no wonder Open Banking is rewriting the rules of finance. Banks are no longer data fortresses; They’re evolving into platforms for innovation, where consent-driven data flows deliver financial experiences once out of reach.

In Latin America, where financial access has historically been limited by legacy infrastructure, institutional control, and, last but not least, economic deprivation, digital banking arrives as a fresh breath of hope.

For decades, poverty has meant more than just low income in this part of the world— it has locked people out of essential money tools: no credit history, no savings account, no safety net.

Open Banking is changing that. With secure data sharing, people once considered “unbankable” can now access loans, manage their budgets more effectively, and take control of their economic future.

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The Trailblazers of Change

Four countries. Four unique journeys. Four distinct stages of transformation. Open Banking in Latin America isn’t a one-size-fits-all story—it’s a dynamic tapestry of bold, region-specific innovation.

For financial institutions ready to expand across LATAM, the real advantage isn’t just watching these changes unfold—it’s truly understanding them, adapting swiftly, and mastering the nuances.

Which innovations can be scaled across borders? Where do local market realities call for a custom approach?

Let’s dive into the details—country by country..

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Brazil’s Framework: A Blueprint for LATAM?

The country’s step-by-step launch—starting with data access, then moving to payments, and finally expanding to open finance—helped build trust among users and institutions. This approach created steady progress toward innovation. Paired with Pix, Brazil’s real-time payment system, adoption accelerated rapidly—with 156 million users and 4.8 billion API calls demonstrating its success.

But this success rests on Brazil’s strong, centralized regulation—something not easily replicated in countries like Mexico, where this advancement has slowed.

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Mexico Blazes a Flexible Trail in Open Finance

As the region’s first mover, the country introduced its Open Banking framework in 2018, setting ambitious goals to level the playing field between fintech startups and traditional banks. 

However, unlike Brazil’s structured phased rollout, Mexico opted for a more gradual and flexible approach. This has allowed for adaptation but also contributed to slower implementation and regulatory uncertainty. As a result, the digital banking progress has somewhat stalled, with fewer API calls and less user engagement compared to Brazil’s rapid growth.

One notable strength is Mexico’s focus on collaboration between banks and fintechs, fostering partnerships that drive new financial products. While its path to innovation differs from Brazil’s, it offers valuable lessons in balancing flexibility with clear regulatory direction. As infrastructure and trust grow, Mexico is poised to accelerate its open finance evolution, transforming initial potential into tangible results.

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The Chilean Style: Smart, Steady, and User-First

Chile’s 2023 Fintech Law sets the stage for open finance with clear API-based rules expected by late 2024. Unlike Mexico, which has the infrastructure but hasn’t enabled PIS (Payment Initiation Services, allowing third-party providers to initiate payments directly from a user’s bank account), Chile places no such restriction, but its dated TEF system (Electronic Funds Transfer, the country’s current payment infrastructure) still doesn’t support everyday low-value payments.

The country has low cash usage (23% of card GDV), high banking (89%), and strong smartphone adoption—nearly half already use phones for in-store and bill payments. While lacking a Pix-style leap, Chile’s trust in banks and tech enables seamless services like bill aggregation and account-to-account payments.

Chile’s opportunity? Build retail payments into Open Banking from day one. The focus isn’t access—it’s convenience, with a chance to combine European-style services with regional needs.

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Argentina Sets the Rhythm: Real-Time Payments Before Regulation

This South American country is carving its own route to digital finance —through the fast lane of real-time payments. While Chile leads with regulation, the country of tango’s approach starts with infrastructure. The Central Bank’s Transferencias 3.0, launched in 2021, has driven account-to-account payments via interoperable QR codes, backed by nearly 40 banks through the MODO wallet initiative (a unified mobile payment app created by Argentine banks to simplify digital transactions).

Smartphone penetration is strong—81%—and mobile usage nears universal levels. Yet, credit transfers remain underused, representing only 19% of cashless transactions. Argentina’s continued reliance on cash, coupled with economic volatility, positions real-time payments and PFM tools as essential.

Infrastructure leads the rhythm now, but the next step in Argentina’s financial dance? A bold regulatory move.

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Behind Every Breakthrough in Finance Lies One Key: Trust

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The financial landscape across Latin America is far from homogeneous—each country handles its own blend of regulation, infrastructure, and market readiness.

Yet across these varied journeys, one challenge unites them all: earning and maintaining customer trust. With concerns about data privacy, security, and financial literacy running high, Open Banking’s promise relies on transparent consent. Without customer permission, the best regulations or technology will fall short.

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Simplify, Scale, Earn Trust: The Contiant Way

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At the forefront of Latin America’s financial revolution, Contiant is more than a technology provider — we are your strategic partner in navigating the complexities of open finance. 

By delivering compliance-ready, plug-and-play API solutions tailored to LATAM’s unique markets, Contiant empowers fintechs, payment providers, and crypto gateways to innovate confidently and scale seamlessly. The platform not only ensures secure data connectivity and robust back-office capabilities but also helps you build the customer trust essential for true financial inclusion. 

With Contiant, leveraging Latin America’s potential means acting swiftly, staying compliant, and putting customer empowerment at the heart of every transaction.

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