2024 Public Sector Perspectives

Liza Niño TTS LATAM Digital Strategy Head and Client & Market Integration Head Alfredo Martinez Public Sector Group, Corporate Banking Montserrat Garrido Latin America Public Sector Sales Head Treasury & Trade Solutions Open Finance in Latin America: The Key to Unlocking Opportunity O pen Finance is an important part of the financial services modernization agenda globally. Governments around the world are increasingly prioritizing open finance and introducing legislation and regulatory frameworks to facilitate its introduction. In Latin America, adoption – provided there is a strategic focus on areas that can deliver the greatest impact and an effective implementation and deployment model – has the potential to significantly increase the efficiency of the region’s financial ecosystems, boost economic competitiveness and commerce, andmost importantly, accelerate efforts to improve financial inclusion. However, to achieve these and other policy objectives, governments and regulators need to consider the benefits and disadvantages of the various approaches adopted by countries worldwide so far and take advantage of the lessons learned to maximize impact. They also need to consider the reality on the ground in their countries and adapt key elements of open finance to solve their strategic goals. While the rollout across Latin America is at differing stages, open finance is expected to become a key priority for all countries. What is open finance? Open finance represents a financial market revolution where customer information, previously held exclusively by banks, becomes a rawmaterial for fintechs, third-party service providers and even other banks and financial institutions, to create new services and tools. It is a development of the concept originally known as open banking which is established in markets such as the UK, Singapore, Australia, Japan, and some countries within the EU. Peter Langshaw Global & Latam TTS Sales Head, Natural Resources & Clean Energy Transition & Public Sector Citi Perspectives for the Public Sector 19 Open finance heralds a transformative era in the financial landscape, where customer data, once confined to the vaults of banks, is now being liberated to empower fintechs, third-party service providers, and even rival banks and financial institutions, to develop innovative services and tools. Open Finance in Latin America: The Key to Unlocking Opportunity 18