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FinTechs belonging to this category offer asset and portfolio management services via an internet platform or software programs and usually manage and dispose of the assets of their customers long or short term according to their specifications without actually holding the property or the possession of those assets. FinTechs, which provide information about and access to overnight or time deposit accounts at national and foreign banks and which execute the transactions to these accounts, also belong to this category. Some FinTechs however only act on request of the customer.
Aside from that some FinTechs offer software or internet solutions enabling users to manage and plan their personal finances on their own by providing graphics, overviews and compilations of their financial data and sometimes indicating financial risks or opportunities, but without actually managing the assets.
Introduction
Attitude of the country towards modern asset and portfolio management services
The environment is still positive for new companies in this market.
Legal affairs
Obligations and requirements to provide asset and portfolio management, or ancillary services described above
Regarding asset management, the business is for companies within the capital market. A license issued by the SMV is needed. Such license depends on the law firm fees but could cost USD50,000 and could take 12 months.
Financial companies shall incorporate a new stock company.
The founders shall apply for an operating license and it may be revoked by the SMV under certain circumstances. Once the company is operating in the Peruvian market, different authorizations and information requirements apply.
The licensing process includes submitting organizational documents, internal control policies, a business plan, risk management systems, and details about the technological infrastructure to be used.
Additional comments regarding the legal situation for asset and portfolio management services or what FinTech’s must be aware of in this business area
The platform provider is not a regulated company.
Economic conditions
Market size for asset and portfolio management services and biggest companies in this business area
The biggest company is BCP Group, the same as for payment services providers. Intercorp Group is a key player as well. Intercorp has a banking company called Interbank.
Additional comments regarding the economic situation for asset and portfolio management services or what FinTech’s must be aware of in this business area
The biggest banking groups count with an asset management company, including mutual funds. FinTechs entering this space must be aware that the core market is currently dominated by large banking groups. Nonetheless, there is room for innovation through digital platforms that offer simplified too