Inter-American Development Bank Publishes Report on Fintech Sandboxes
By JD Alois
The Inter-American Development Bank (IDB) is out with report covering the topic of Fintech Sandboxes. These new step in fostering financial innovation was first launched in the UK by the Financial Conduct Authority (FCA) but the concept has since been replicated in a growing number of nations. The idea is to allow innovative firms and entrepreneurs to experiment with their services in collaboration with regulators. Most financial regulation was created during the analog past – having a Sandbox means antiquated rules won’t stymie beneficial change.
According to the IDB report, Fintech has been gaining strength throughout the Latin American and Caribbean region. There are now more than 700 Fintech. The following American countries have captured the bulk of this activity: 32.7% are in Brazil, 25.% in Mexico, 11.9% in Colombia, 10.2% in Argentina, and 9.2% in Chile. A good percentage of these new firms are targeting the population that is underserved – or not served at all by traditional financial services firms.