Since its inception Cumplo has been resisted by the formal financial system. As soon as its operations began in 2012, the Superintendence of Banks and Financial Institutions (succeeded by the CMF), claimed that Cumplo was entering the banking business (which is prohibited by Law) as it aimed to raise funds from third parties and grant credits. However, this claim was finally dismissed.
There are specific regulations for loan granting (limits on interest rates, mandatory prepayment conditions, etc.) and factoring (specific requirements that invoices must meet before being assignable).
So long as the abovementioned services are not conducted with funds collected from the general public (i.e. banking activity) there would be no need for the Fintech to establish itself as a formal bank in Chile and thus would not be subject to regulations applicable to banks and financial institutions.
The White Paper suggests, in general, for Collective Financing Platforms, that they should be required to register with the CMF, provide certain specific information (such as sufficient information on the project so as to allow the financing party to adequately assess the risks of financing the project or granting a specific loan; and that such information must be complete, nonbiased and trustworthy) and comply with Anti Money Laundering requirements. Finally, the customer must be informed if the platform itself keeps investments in the projects or has loaned itself therein, in order to solve any potential conflicts of interests.
Information regarding revenues number of transactions and customers is not readily available.
The scope of the services should be carefully analyzed on a case by case basis in order to assess any potential risks relating to compliance with consumer protection, data privacy and other laws generally applicable to service providers.
Rodrigo De Alencar