Introduction

Attitude of the country towards loan-giving-, factoring-, brokerage-, finetrading- and ancillary services

• Regulation: Allowed but tightly regulated under Ley de Servicios Financieros (Ley N° 393).
• Authorized Entities: Only ASFI-licensed banks, cooperatives, microfinance institutions, or regulated FinTechs can lend.
• FinTechs: Must be licensed financial entities or operate via the regulatory sandbox under Decreto Supremo N° 5384 (2025).

• Regulation: Legally permitted, widely used by SMEs; governed by commercial law and sometimes financial regulations depending on structure.
• Supervision: Can be provided by financial institutions or commercial firms; ASFI oversight applies if offered broadly to the public.
• FinTechs: Factoring FinTechs are viable but must comply with AML/CFT and financial reporting rules.

• Regulation: Fully regulated under Ley del Mercado de Valores (Ley N° 1834); requires registration and authorization with ASFI and Bolsa Boliviana de Valores (BBV).
• FinTechs: Innovation is welcome but formal licensing is mandatory; capital, reporting, and investor protection rules apply.

• Regulation: Not specifically regulated as “finetrading,” but falls under commercial finance and structured lending laws.
• Allowed: As long as it avoids unauthorized deposit-taking or securities issuance.
• FinTechs: Allowed if compliant with AML, transparency, and licensing if financial intermediation is involved.

• Regulation: Generally allowed with limited direct regulation unless handling personal data or financial intermediation.
• Compliance: Must follow data protection, consumer protection, and transparency laws.
• FinTechs: Supported, especially as they aid financial inclusion and transparency.

Legal affairs

Obligations and requirements to provide loan-giving-, factoring-, brokerage-, finetrading, and ancillary services described above

• Allowed under Ley N° 393
• Supervised by: ASFI.
• Requirements:
• Authorization as a bank, non-bank financial institution, cooperative, or fintech (via regulatory sandbox Decreto Supremo N° 5384).
• Maintain minimum capital based on risk.
• Follow AML/CFT laws (Law N° 004 and 262).
• Have risk management and credit policies.
• Respect consumer protection (clear contracts with interest rates, fees, terms).
• Submit periodic reports to ASFI and UIF (Unidad de Investigaciones Financieras).

• Allowed as a commercial activity; ASFI supervision if structured as financial intermediation.
• Requirements:
• If non-financial (B2B invoice purchasing): commercial registration (Fundempresa), clear contracts, comply with tax and commercial laws.
• If offered publicly or as financial intermediation: requires ASFI authorization, AML compliance, reporting, and operational controls.

• Allowed under Ley N° 1834 (Ley del Mercado de Valores).
• Supervised by: ASFI and Bolsa Boliviana de Valores (BBV).
• Requirements:
• Licensed as Casa de Bolsa (broker-dealer).
• Meet capital and solvency requirements.
• Employ experienced management and compliance officers.
• Comply with market conduct, AML/CFT, and investor protection rules (disclosures).
• Be a BBV member and submit audits and reports to ASFI regularly.

• Allowed but not specifically regulated; governed under general finance and lending rules.
• Requirements:
• If self-funded trade finance: register as a commercial company, transparent contracts, comply with tax, civil, and consumer laws.
• If intermediating or managing third-party funds: require ASFI authorization, meet capital, AML, and compliance rules.

• Allowed with light regulation, subject to consumer protection and data laws.
• Requirements:
• No financial license needed unless handling funds or intermediating.
• Comply with consumer protection laws and data protection (Law N° 164 on Telecommunications and ICT).
• Contracts must be transparent and consent-based.
• Credit reporting must register with credit bureaus (e.g., Infocred).

Additional comments regarding the legal situation for loan-giving-, factoring-, brokerage, finetrading-, and ancillary services or what FinTech’s must be aware of in this business area

• Loan-giving and brokerage are classified as financial intermediation, which only entities authorized by ASFI can perform.
• Operating without a license — even through digital platforms — can be prosecuted as illegal financial activity under Ley N° 393.
• FinTechs must clearly distinguish between:
• Ancillary services (tools, tech platforms) that may not need a license.
• Fund handling or investment decisions, which do require licensing.

• Permitted if they:
• Do not manage third-party funds.
• Use transparent contracts.
• Focus on B2B transactions.
• ASFI authorization may be required if activities involve public fundraising, risk transfer, or third-party fund management.
• Fintechs should structure operations carefully to avoid unintentionally falling under financial intermediation rules.

• Fully regulated by Ley del Mercado de Valores (1834).
• Requires Bolsa Boliviana de Valores licensing with:
• Capital and solvency requirements.
• Compliance with AML/CFT and investor protection rules.
• Oversight by ASFI and the Bolsa Boliviana de Valores (BBV).
• Fintechs can partner with licensed brokers or test solutions in the sandbox before applying for a full license.

• Services like credit scoring, analytics, or financial education are lightly regulated but must:
• Avoid regulated activities (e.g., fund handling or deposit-taking).
• Comply with Law N° 164 (data protection) and consumer protection standards.
• Financial data sharing (e.g., credit history) requires user consent and, in some cases, registration with Infocred or other bureaus.

• Provides a controlled testing environment for innovative financial services (e.g., digital lending, factoring, embedded finance).
• Requirements:
• Submit proposals detailing model, risks, and consumer protections.
• Operate within sandbox limits under ASFI supervision.
• Use this stage to prepare for eventual licensing.

• Misclassification of services (e.g., acting as a lender without a license) can lead to enforcement actions.
• AML/CFT non-compliance can result in sanctions — even for ancillary services that influence financial decisions.

Economic conditions

Market size for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services and biggest companies in this business area

• Market Size: Bolivia’s total credit portfolio in 2024 was around USD 30 billion, distributed as:
• Commercial loans: ~40%
• Microcredit: ~25%
• Consumer loans>: ~20%
• Housing loans: ~15%

• Market Size: Estimated USD 150–300 million annually, mainly serving SMEs.
• Trend: Increasing use as SMEs seek alternatives to traditional bank loans.

• Market Size: Bolivia’s capital market remains small and illiquid.
• Bolsa Boliviana de Valores (BBV): ~USD 10 billion traded in 2024, mostly in fixed income and public debt.
• Retail investors: Participation is low; digital brokerage is still limited.

• Market Size: No official data; estimated USD 500 million annually, mostly through:
• Bank-backed instruments (e.g., letters of credit).
• Informal supplier credit arrangements.
• Fintech presence: No specialized finetrading FinTechs yet.

• Market Size: Small but growing, driven by digitalization and open banking discussions.
• Growth areas: Digital credit scoring, collections automation, and SME management tools.

Additional comments regarding the economic situation for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services or what FinTech’s must be aware of in this business area

• Bolivia’s economy is relatively stable but faces structural issues:
• Low foreign currency reserves
• Exchange rate pressure and inflation risks
• High informality (over 70% of the labor force)
• These factors heighten credit risk, particularly in consumer and SME lending.
• Fintech requirement:Develop robust credit scoring using alternative data (e.g., mobile usage, payment history).

• High unmet demandexists among:
• SMEs and microenterprises excluded from traditional loans
• Rural and informal workers with no credit history
• Younger consumers seeking digital-first solutions
• Opportunities: Factoring and alternative lending models with mobile platforms, ow onboarding costs, and behavior-based analytics.

• Internet and smartphone penetration is rising, especially in urban centers.
• Expansion of digital wallets and online payment gateways creates opportunities for:
• Embedded lending
• Automated invoicing
• Analytics-driven financial tools.

• Bolivia’s capital market is shallow, dominated by institutional players and fixed-income products./li>
• Retail brokerage and equity-based platforms face growth barriers without financial education and institutional partnerships.
• Finetrading challenges:slow payment cycles, complex supply chains, and low trust among SMEs unless integrated with ERP or supply chain ecosystems.

• The financial system is highly regulated and centralized.
• Banks and state-backed institutions dominate lending, making partnerships more feasible than direct competition for fintechs.
• Regulators (ASFI, BCB) are open to innovation, but only under strictly controlled frameworks like the DS N° 5384 sandbox.