Name
Global FinTech Guide
Country _ Name
Costa Rica
SectionTitle
Financial advisory and broking services including robo advisory and auto-trading
Body
FinTechs belonging to this category offer advisory and broking services for investments usually through online platforms.

Robo advisory services usually offer an investment proposition following a series of questions concerning the personal financial background and the risk-bearing capacity of the user. Sometimes the respective platform also enables the user to directly execute the proposed investment.

Auto-trading concerns all services which automatically trade on behalf of the customer according to his or her specifications.

Apart from that, some FinTechs collect and offer merely or as an ancillary service market information or operate comparison portals to increase the transparency of the capital markets and to help the investors with their decision-making.

There are also FinTech-advertising-services which advertise various financial services or products.

Introduction

Attitude of the country towards modern financial advisory and broking services

Despite the complexity of the jurisdiction, Costa Rica continues to be a destination for foreign direct investment (FDI), because although the need for transparency adds complexity, it also generates security, and this makes it an attractive place for foreign companies to establish operations in the country. This positive and increasingly receptive attitude towards modern financial advisory and broking services is driven by economic growth, rising financial literacy, and an expanding middle class.

The country's regulatory environment, overseen by the General Superintendency of Financial Entities (SUGEF), ensures transparency and security in financial activities. Additionally, the digital transformation and the influence of international financial practices have made advanced financial services more accessible. These factors collectively foster a favorable environment for the growth and acceptance of financial advisory services in Costa Rica.

Legal affairs

Obligations and requirements to provide financial advisory and broking services, or ancillary services described above

Costa Rica does not have a legislation that specifically regulates FinTechs related to financial advisory services. However, SUGEF regulation concerning general FinTechs in Costa Rica may be applied. To these companies could also apply the provisions of both Law 8968 on the Protection of the Person against the Processing of Their Personal Data, and Law 7472 on the Promotion of Competition and Effective Consumer Defense.

Additional comments regarding the legal situation for financial advisory and broking services, or adjacent services or what FinTechs must be aware of in this business area

N/A

Economic conditions

Market size for financial advisory and broking services as well as adjacent services and biggest companies in this business area
We do not have current records regarding the market for financial advisory services. However, FinTechs are generating a transformation in the banking financial industry and pushing banks towards innovation and the use of technologies.

While in Costa Rica there is no official count of how many FinTechs are operating, the truth is that there is a group of startups and consolidated companies that have experienced considerable growth in recent years providing said services.

Additional comments regarding the economic situation for financial advisory and broking services as well as adjacent services or what FinTech’s must be aware of in this business area

N/A

Authors

Close

Choose country