Online banking services
FinTechs belonging to this area offer traditional banking services in a modern way, usually through online services or mobile applications as well as ancillary services – e.g. enabling customers to manage their giro- or custody-accounts online and in real time or offering e-wallet services. Keywords in this context are also API-Banking or Banking as a Service (BaaS)/ Bank as a Platform (BaaP).
API stands for application programming interface and is offered to access data banks and to extract and insert information. API-Banking consequently means the access to data banks of banks to offer new and innovative banking applications.
Through these services FinTechs offer services with new functions, e.g. enabling customers to manage their accounts online and in real time.
BaaS – Bank as a Service/BaaP – Bank as a Platform:
The API-based Bank as a Service platform has a full banking licence, but merely serves as the back end for standalone independent FinTechs, which “use” the licence and the back end of the bank to offer new financial services, launch additional financial products or expand into additional markets.
Attitude of the country towards online-banking services
In Argentina, online banking is already a mature and established functionality adopted by almost all banks and financial institutions. In order to maintain competitiveness, traditional banking entities have been forced to introduce top tier technology in order to improve clients’ user experience as new FinTech companies started to emerge, disrupting the way in which financial services were historically provided. The latest developments incorporated by banks include the incorporation of mobile apps to operate online banking services, robo advisory, among other functionalities.
Obligations and requirements to provide online-banking services described above
Online banking services as part of the usual banking business and financial services are activities governed by Capital Markets Law 26,831 and Law 21,526 (Ley de Entidades Financieras). There are no provisions within the law that establish the obligation to obtain a special license in order to provide online banking services.
Additional comments regarding the legal situation for online-banking services or what FinTech’s must be aware of in this business area
While providing online-banking services, companies should be aware of complying with data protection regulations (Data Protection Law 25,326) and regulations related to prevention of money laundering and financing of terrorism.
Market size for online-banking services and biggest companies in this business area
There are no relevant statistics on the size of the market of online-banking services in Argentina. However, as previously mentioned, nowadays it is common that all banks and other financial entities offer online-banking services to their clients.
Additional comments regarding the economic situation for online-banking services or what FinTech’s must be aware of in this business area
Traditional banks are facing fierce competition from FinTech companies providing digital payment solutions, P2P loans, among other financial services. This situation forces banks to constantly keep up on the new functionalities offered by FinTech companies, modernising the way in which they provide financial services to their clients.