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
Any kind of bank needs a license prior starting business. Online services are certainly allowed and promoted by the Regulator.
The Covid-19 pandemic has encouraged consumers to online access their bank accounts and now it is widely used by most of the public. Moreover, during the last two (2) years, Peruvian banks have implemented diverse products avoiding physical presence, consisting in a significant change in the Peruvian financial system.
In March 2022, a Legislative Decree #1531 entered into effect, allowing financial entities to operate on a fully digital basis. Further explanation is expected in the regulation of this Decree in order to implement these changes.
Obligations and requirements to provide online-banking services described above
A banking license is needed. The SBS grants an organisational license and then the banking company applies for an operational license. It could take a year and the costs mostly depend on the legal fees.
Additional comments regarding the legal situation for online-banking services or what FinTech’s must be aware of in this business area
Market size for online-banking services and biggest companies in this business area
Banking services are only allowed if the company first holds a banking license. Then, online services can be performed but not as an online bank yet. Most of the banks offer online products as a regular practice. The have already implemented online platforms.
Additional comments regarding the economic situation for online-banking services or what FinTech’s must be aware of in this business area