Going Digital integrated policy framework

Abstract

This paper was written by Molly Lesher, David Gierten and Angela Attrey in collaboration with colleagues from across the OECD Secretariat. It was approved and declassified by the Committee on Digital Economy Policy on 15 November 2018 and was prepared for publication by the OECD Secretariat.This publication is a contribution to the OECD Going Digital project, which aims to provide policy makers with the tools they need to help their economies and societies prosper in an increasingly digital and data-driven world.For more information, visit www.oecd.org/going-digital.

Making digital transformation work for all in Chile

“…Evidence shows that efficiencies generated by open banking in the SME sector can be significant, and that the products and services powered by open APIs bring real value to SMEs (FinteChile and EY, 2019 [41]). Fintech has also contributed to decrease transaction costs for lenders wishing to reach out to underserved segments of the SME population, such as firms in rural and remote areas, micro-enterprises and informal ventures (OECD, 2020 [42]).…”

“…The aim is that small business owners and entrepreneurs can share banking data securely and easily within a well-functioning open banking protocol. Such regulation could also encourage financial innovation by making banking data available to financial sector start-ups, as well as established actors (OECD, 2020 [42]). For instance, the Australian government agreed to the recommendations made in a review on open banking in May 2018.…”

“…Some countries have made their legislative framework more favourable to innovation in the financial sphere (OECD, 2020 [42]). In addition to new regulations concerning investment-based crowdfunding Fintechs implemented in 2017, Brazil decided to regulate credit Fintechs in 2018.…”

“…Fintech's ecosystem in Chile has registered a 2-fold increase in the number of start-ups between 2016 and 2019 to more than 100 start-ups (Figure 19) (Finnovista, 2019[43]). The Fintech industry has grown by 34% in 2017 and 29% in 2018 (OECD, 2020 [42]). This rapid growth highlights a thriving ecosystem offering a wide range of financial services for SMEs, ranging from payments and remittances to loans and crowdfunding and scoring services.…”

“…Sandboxing offers a regulatory perimeter for innovative business ideas to be tested in a controlled environment (OECD, 2020 [42]). The rationale behind such an approach is to allow for more flexibility and experimentation for innovative (and typically small-scale) financial activities.…”