In the last year, there has been a growing concern about recovering the productivity indexes that characterized Chile above its neighbors in Latin America. over its neighboring countries in Latin America. This is not only a challenge for the private sector, but also for the public sectorThis is not only a challenge for the private sector, but also for the public sector, through actions that help to promote this growth. For this reason the bill that is being discussed today in Congress was born: the Fintech Law.

The progress of this bill has been increasingly strengthened by the indications that have come from the government: guaranteeing a legal framework that promotes financial innovation and free competition.. This will help both individuals and companies without access to traditional financial services and products, but which urgently need support, especially in a critical situation such as the one currently being experienced, with high inflation rates and uncertainty for the future. and uncertainty for the future.

The urgency of accelerating this transformation is mainly for two reasons: the first is that, with each passing day, access to banking for the unbanked is delayed, access to banking for the unbanked is delayed with each passing day.and the second is that uncertainty about the future economic scenario is growing even more..

This is where this government initiative comes in, as it can deliver cross-cutting benefits. can deliver benefits at a transversal levelThis is where this government initiative comes in, as it can provide benefits at a transversal level: financial democratization, peer-to-peer validation and membership in a specific entity, helping to promote technology and financial-based companies in Chile, and boosting both new and existing projects. This regulation would benefit more than 170 Fintech companies in Chileof which 63% provide some kind of financial inclusion solution, 32% reduce the cost of this type of products, and 71% offer specialized services for SMEs.

Digital transformation is no longer a thing of the futureThe digital transformation is no longer a thing of the future, but a reality that is lived day by day in the present and that was clearly driven and accelerated by the effects of the pandemic. Both in developed countries and in Latin America (and especially in Chile), a great opportunity is seen to accelerate the growth of national economies through this digital change, empowering through this digital change, boosting the impact and sustainability of their productivity, and therefore the support of the Fintech Law can be key to push the Chilean economy on the right path for the future.

Tomás Latorre

AGF Team