Name
Global FinTech Guide
Country _ Name
Chile
SectionTitle
Identification
Body
FinTechs belonging to this category provide identification services, which are required for most banking services.

Introduction

Attitude of the country towards identification services

The use of FinTech belonging to this category is increasingly common and has become more widespread as the digitisation of banking has become more widespread.


Legal affairs

Obligations and requirements to provide identification services

There is no specific regulation regarding FinTechs in this line of business. Accordingly, and apart from compliance with general rules applicable to service providers, there generally are no specific license, minimum capital, or liquidity requirements.

However, in case the identification services consider the processing of data that are considered to be of personal or sensitive nature, its collection and management would be protected by law. In this regard, Chilean law currently defines personal data as 'any information concerning identified or identifiable natural persons', and sensitive data as 'data referring to people's physical or moral characteristics, or facts or circumstances of their private life or intimacy, such as personal habits, racial origin, ideologies and political opinions, religious beliefs, physical or mental health states and their sexual life'. Furthermore, regarding data of economic, financial, banking, or commercial nature, Chilean data privacy laws establish limitations of the documents under which such obligations shall be evidenced in order to be communicated and years of the obligations that may be communicated.

Currently, a new data privacy law has been enacted, which is aimed at strengthening Chile's data privacy regime, including the creation of a governmental agency with faculties to oversee its compliance and fine breaches to the same. This new law will come in force on December 1st, 2026.

Notwithstanding the foregoing, the FinTech Law introduces the “Open Banking System”, that allows the exchange between financial service providers of the personal information of customers who have expressly consented to it.


Additional comments regarding the legal situation for identification services or what FinTech’s must be aware of in this business area

N/A


Economic conditions

Market size for identification services and biggest companies in this business area

In terms of the types of markets where FinTech companies compete, the “Infraestructure for Banks and FinTechs” segment, of which Identification services are part of, has turned out to be one of the groups with the highest growth of the study, with 15 new startups in the last year, reaching 44, which represent a 12.6% of the market. Finnovista Fintech Radar for Chile 2024: https://www.finnosummit.com/radar/chile-sexta-edicion/.

Information regarding revenues and customers is not readily available.

Additional comments regarding the economic situation for identification services or what FinTech’s must be aware of in this business area

N/A

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