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Em Conversa appears to be like to uncover the secrets and techniques in Latin America (Latam) which have triggered the fintech market to increase, from being price lower than $50million in 2016, to $2.1billion in 2022. This week Rodrigo Tumaián, the co-CEO and co-founder of Prometeo OpenBanking, one of many largest open banking API platforms in Latam, shares his views on how open banking is remodeling the Latam credit score market.

Prometeo is dedicated to monetary innovation and to growing a extra open and linked monetary market in Latin America. The corporate supplies a single level of entry to info, transactions and funds via +100 APIs in additional than 36 monetary establishments and in 10 international locations within the area.

Rodrigo Tumaián is the co-CEO and cofounder of Prometeo OpenBanking. He has greater than 10 years of expertise in pc safety in nationwide and worldwide corporations, equivalent to TCS and AT&T. He has additionally held the function of president of the Uruguayan Chamber of Fintech since 2021.

Are you able to inform me a bit concerning the firm and your function inside it?
Rodrigo Tumaián, co-CEO & co-founder of Prometeo OpenBanking

I’m the co-founder and c-CEO of Prometeo Open Banking, the biggest open banking platform in Latin America. We began virtually 4 years in the past, earlier than formally founding Prometeo we developed a PFM (private finance administration).

Again then, after we acquired along with different fintechs and advised them about our concept, we began speaking about monetary training, usability, person expertise and the dialog turned to interoperability, tips on how to entry knowledge, standardise and supply that connection to 3rd events.

There we discovered about open banking in Europe. When the fintech regulation arrived in Mexico in 2018, we mentioned ‘it is a paradigm shift within the ecosystem’. So we took the know-how we had already developed and based Prometeo. At the moment, we offer a single entry level to banking info, transactions and funds to a number of monetary establishments within the area.

How are open banking and open finance remodeling the Latam credit score market?

Open banking is about accessing and connecting info between banks, monetary establishments and every other third events via APIs, with the person consent and for its profit. If we observe, in our area there’s a excessive web penetration and 70 per cent of the inhabitants has entry to a smartphone; and on the identical time 70 per cent of the inhabitants is unbanked.

From the customers’ perspective open banking and open finance brings extra choices, by accessing their info via APIs these customers could entry credit and loans from monetary establishments. On the identical time, these establishments could entry trusted and standardised info to have the ability to consider the customers’ scoring and supply them credit score or different forms of monetary providers.

There are very fascinating experiences from a few of our fintech purchasers which might be offering credit and utilizing your cellphone line as a assure. So on the finish of the day it’s all about growing new functions and monetary providers that adapt to the precise wants of Latin American shoppers.

Is there something unique to the Latam area that we’re seeing by way of open banking and finance growth?

Latam’s center class has grown by greater than 50 per cent up to now decade, so there’s an enormous demand for higher monetary services. Coping with cash in Latam is a fairly powerful activity, and digital banks and fintech corporations are offering extra accessible providers and a greater person expertise. In Latam the monetary infrastructure may be very uneven and APIs present a layer of standardisation that may be very a lot wanted. APIs permit siloed methods to speak with one another to develop merchandise extra agilely which might be personalised to customers.

What are the advantages of optimising open banking with open finance; how will end-users’ monetary knowledge be additional secured?

It’s nonetheless to this present day that a few of Latam’s conventional monetary establishments nonetheless comply with outdated methodologies and have guide processes. This could often imply an absence of automated and standardised infrastructure for funds and cash administration, which might clarify why almost half of Latam’s inhabitants are unbanked or have issue opening financial institution accounts. However this doesn’t imply they’re financially inactive; they want loans and wish to open financial savings accounts.

That is when open banking takes motion, enabling processes to turn out to be extra environment friendly and rapidly, enhancing monetary inclusion within the area in addition to encouraging the circulation of cash.

Open banking and its path to open finance is the answer as they provide third-party suppliers entry to knowledge from monetary establishments in a protected and environment friendly method to pace up monetary processes. This info is secured as the shoppers are those who’ve the facility of consent to present it to the third events; with out them it wouldn’t be doable to have the entry.

What’s the function of regulators in driving the event of open finance in Latam? Have they got the identical affect worldwide, or is their affect unique to the area?

Regulators have gotten an increasing number of pushed to implement and create legal guidelines that may result in open finance.

On the identical time, corporations should not ready for laws to implement applied sciences to ship extra worth to their clients, equivalent to permitting an organization to routinely and rapidly handle a number of financial institution accounts across the area, entry buyer monetary info to analyse credit score eligibility, or immediately hyperlink the e-wallet to a buyer’s checking account and the enterprise to allow funds, relatively than ready for a world customary. Banks are approaching corporations like Prometeo an increasing number of to type alliances as a result of they see that we deliver worth and that there’s enterprise to be performed.

Are you able to inform me about Prometeo’s newest providing which helps with the event of open finance within the area?

In Prometeo we all know that the following step in open banking is account to account funds. We’ve got been working arduous to launch our A2A direct fee resolution for Latin Individuals within the upcoming weeks. This would be the solely A2A resolution with a regional protection in Latam and the advantages for retailers and customers are big. We’re coming with a fee service with no intermediaries, lowered charges and real-time funds. Your complete fee course of is frictionless and executed in just a few steps from the service provider app or web site, this additionally facilitates the conciliation course of for them because the fee is reconciled routinely.

Our knowledge and data options are additionally rising and we maintain growing connections with crucial monetary establishments in Latam.

Are there any plans to increase to a different area? What does the corporate’s roadmap and progress plan seem like?

We lately landed in Peru and we now have a devoted crew there working with our purchasers. Peru is a vital marketplace for us, we now have full banking protection and many purchasers connecting to our APIs. We are actually specializing in increasing in Chile and Mexico. We’re additionally partnering with different fintech corporations equivalent to crypto and digital wallets. We actually take pleasure in discovering synergies and customary tasks, we strongly imagine that’s the appropriate path for open banking and open finance to develop.

Any ultimate ideas?

If we see the massive image by way of open banking and open finance, we will say 2022 is the yr of partnerships. As we have been simply talking, these alliances are an effective way to hitch efforts and maintain opening Latin America monetary system.

  • Francis is a journalist with a BA in Classical Civilization, he has a specialist curiosity in North and South America.



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Entering the cannabis banking market – Independent Banker

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Entering the cannabis banking market – Independent Banker


Neil Zick, president and CEO of Twin Metropolis Financial institution, helped Tim Norris acquire financing to start out The Hyperlink Hashish Co. Photograph: Susan Seubert

Whereas the authorized standing of banking cannabis-related companies stays fuzzy on the federal stage, group banks in some states are discovering that, with correct controls, they’re capable of enter this area of interest market and provide banking providers to those native companies.

By Judith Sears


When Oklahoma legalized the gross sales of hashish for medicinal functions in 2018, executives of $550 million-asset Blue Sky Financial institution in Tulsa, Okla., determined to take a detailed take a look at that market. “We realized that the hashish trade wasn’t going to go away the state,” says Brian Schneider, CEO of the group financial institution. “We wish to serve our group and supply banking providers to the industries right here.”

It’s a technique that an rising variety of group banks are embracing. “We’re right here to serve the various wants of quite a lot of clients,” says Chris Hartman, chief deposit officer for $1.3 billion-asset Cogent Financial institution in Orlando, Fla., which banks cannabis-related companies (CRBs). “That is an underserved market, and we consider it would proceed to develop.”

“Our compliance program, primarily based on elevated threat, could be very strong. We put the purchasers by way of an intense software course of.”
—Chris Hartman, Cogent Financial institution

Nevertheless, the ambiguous authorized panorama complicates compliance; 47 states, the District of Columbia and 4 U.S. territories have legalized marijuana in some type, but it surely stays a Schedule 1 Managed Substance on the federal stage. That has made many banks cautious of this area of interest.

Fast Stat

65%

of voters say CRBs ought to have entry to banking providers in states the place hashish is authorized

Supply: ICBA

Within the absence of specific federal tips, banks and regulators comply with the 2014 FinCEN steering and the Cole Memo tips printed beneath the Obama administration. In observe, explains Neil Zick, president and CEO of $75 million-asset Twin Metropolis Financial institution in Longview, Wash., which started banking CRBs in 2014, the regulatory necessities align with normal Financial institution Safety Act (BSA) necessities.

“The principle ingredient is BSA,” Zick says. “They give the impression of being very intently at figuring out your buyer and what the client is doing, however BSA is the driving drive.”

Hartman agrees that banking CRB accounts requires heightened due diligence and notes that Cogent Financial institution is very selective in bringing new accounts on board. “Our compliance program, primarily based on elevated threat, could be very strong,” she notes. “We put the purchasers by way of an intense software course of.”

Digital path to compliance

Whereas the regulatory scrutiny is enhanced, group bankers agree that there at the moment are some good digital options obtainable that ease the compliance burden. “We discovered an answer that’s compliance-based and has an automatic software course of,” explains Deborah Lin, AVP, cannabis-related banking lead for Blue Sky Financial institution. “We are able to add docs securely. We’ve developed a workflow and we are able to go from software to submission to inner assessment, compliance assessment and last approval, all automated.”

Zick stories comparable success for Twin Metropolis Financial institution. “Our third-party software program tracks exercise within the accounts, and we are able to examine what they’ve mentioned they’re going to do and likewise what they report back to the state,” he notes. “In consequence, we are able to inform for certain that their exercise is consistent with their reporting with regard to gross sales to the state.”

In such an intricate regulatory atmosphere, nevertheless, group bankers warning that it’s vital to judge vendor companions rigorously. Cogent Financial institution found that some service provider bank card suppliers code transactions in a means that masks what the CRB-related transaction actually is with a purpose to declare that they’re compliant.

“We don’t consider that’s compliance, and we don’t associate with these suppliers,” Hartman says.

Lindsay Larson, Cogent’s BSA/AML officer, provides that it’s crucial to take a look at which transactions journey on which monetary networks. If a debit card transaction travels the ACH rail, for instance, it’s authorized. If it travels as a bank card transaction, it’s prohibited. “Make sure that the supplier has closed the loop and the transactions solely journey the ACH rail,” she warns.

To handle the elevated regulatory threat and burden, group banks typically assign devoted personnel or present specialised coaching for dealing with CRB-related accounts. Cogent Financial institution designates particular hashish subject material consultants in every promote it serves and channels prospects to those relationship managers for optimum service. Along with Lin main hashish banking for Blue Sky, the financial institution employed a compliance staffer particularly for dealing with CRB accounts.


At proper, Neil Zick, president and CEO of Twin Metropolis Financial institution, with buyer Tim Norris of The Hyperlink Hashish Co., in Longview, Wash.


Hashish financing: Not as clear minimize

Whereas increasingly more group banks are endeavor depository relationships with CRBs, banks have been rather more hesitant to enter lending relationships. The reason being easy: the likelihood that the federal authorities would seize belongings if an account acquired into critical bother. “We don’t wish to personal a develop home or a producing facility that we are able to’t promote or will get forfeited,” Hartman says.

However, Cogent Financial institution and Twin Metropolis Financial institution have taken small steps, each extending loans to actual property clients that lease to CRB tenants. “Typically talking, if a enterprise is in a strip mall, we’ve been capable of present that the money move from the opposite tenants within the constructing greater than covers the money move for no matter we’re lending,” explains Zick.

Hartman has noticed an elevated willingness amongst professionals to be related to CRB-related transactions. “Early on, attorneys or title corporations had been unwilling to be within the house, however we now not see that,” she says.

Mainstreaming cannabis-related companies

The federal authorized standing of hashish could stay in limbo for a while, however in lots of states, it’s quickly being built-in into the mainstream economic system.

“Affiliation with CRB seeps into quite a lot of areas,” says Steve Eager, ICBA VP of congressional relations. “It’s not so simple as drawing a line and saying, ‘We don’t financial institution on this area of interest.’ Suppose a financial institution does an agricultural mortgage for a fertilizer firm that, in flip, sells to an organization that’s promoting marijuana in Washington state. All of a sudden, you’re banking a CRB enterprise, no less than tangentially.”

Schneider recollects that when Blue Sky Financial institution introduced it could work with CRB-related accounts, it found a number of firm within the enterprise group. “You wouldn’t consider how many individuals would elevate their fingers and say, ‘Sure, now we have this,’” he says. “I’m extra satisfied than ever that these deposits are flowing by way of each financial institution. Solely these banks which might be attempting to know that market understand this.”

“This can be a significant trade in our state,” provides Lin. “It crosses over all companies and is producing new employment and job development. Economically, hashish generates development.”


SAFE Banking Act replace

Regardless of broad assist for CRB banking reform on the federal stage, it has but to occur. The SAFE Banking Act (Safe and Honest Enforcement Banking Act), first launched in 2017, prohibits federal regulators from penalizing a depository establishment for offering banking providers to state-legal cannabis-related enterprise. It has been handed within the Home of Representatives seven occasions with sturdy bipartisan assist. Within the Senate, the Protected Act has 42 co-sponsors, 9 of that are Republicans, however the Senate has by no means truly held a vote.

On a separate observe, activists and a few legislators have pushed for extra broad-based marijuana reform. On July 21, 2022, Senate majority chief Chuck Schumer (D-N.Y.) launched the Hashish Administration and Alternative Act (CAOA), laws that might take away hashish from the federal checklist of managed substances.

All in on the SAFE Act

ICBA was the primary monetary providers commerce affiliation to assist the SAFE Act, and the backing of group bankers has been essential to creating broad assist for it. “Group bankers have slightly completely different perspective than a motion for marijuana reform,” Eager says. “It’s seen as mainstream and impacting the enterprise group.”

He doubts the CAOA laws has the assist to cross Congress and, had been Republicans to take the Home in 2022, passage of complete marijuana reform could be much less probably. Eager does consider, nevertheless, that the SAFE Act might cross congressional muster. He factors out that with 50 Democratic sponsors and 9 Republican sponsors, just one extra vote could be wanted to cross it. “I believe it’s a really protected wager that you might choose up one vote,” he notes.

“There’s mounting political assist to get one thing performed,” he provides. “We expect authorized companies ought to have equal entry to the monetary providers system.”


Judith Sears is a author in Colorado.





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Fintechs Risk Losing Talent Without Improving Menopause Support: Study Reveals

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One in 5 girls in tech and fintech have left or wished to depart their job as a result of menopause. However with 75 per cent of girls stating they might be extra more likely to keep at an organisation if it had supportive measures in place, are corporations doing sufficient?

Analysis from Intuit QuickBooks has revealed that nearly 1 / 4 of girls experiencing menopausal signs have delayed or cancelled plans to use for a promotion.

The research, which quizzed 3,000 males and women working in fintech or for tech suppliers, additionally reveals that 38 per cent of girls who’ve skilled menopausal signs say they typically felt much less assured of their talents.

Forty-one per cent stated the principle challenges for themselves or somebody they work with who’s going via the perimenopause/menopause within the workforce is the signs affecting their means to carry out work duties. These embody sizzling flushes (39 per cent), temper modifications akin to despair, anxiousness and stress (37 per cent) and poor sleep high quality (36 per cent).

About three quarters throughout each women and men thought the expertise of menopause may have an effect on plans to progress into senior roles.

Supporting girls

“When individuals consider the menopause, they typically take into consideration the seen uncomfortable side effects it causes. The influence it will possibly have on confidence is way much less mentioned – however is definitely no much less damaging, notably within the office,” says Jolawn Victor, VP and head of UK at Intuit QuickBooks.

“Our analysis reveals that throughout each women and men, about three quarters thought the expertise of menopause may have an effect on plans to progress into senior roles. Due to this fact, employers have a duty to supply the help and steering wanted to allow individuals to undergo the menopause with out it having a detrimental influence on their profession.

“Placing extra of a give attention to supporting girls via menopause can have many advantages for employers too – they’re more likely to discover that retention charges and their pipeline of expertise will enhance, as obstacles to development and fulfilment are eliminated. Taking steps in areas like this can even assist to shut the gender pay hole in tech and fintech.”

Office stigmas

Forty-three per cent of girls stated they wouldn’t disclose that they’re going via the menopause to their employer. Almost half of these stated they wouldn’t wish to draw consideration to the very fact they have been struggling, whereas 40 per cent stated they didn’t consider they might get any further help.

Moreover, 36 per cent didn’t wish to make colleagues really feel uncomfortable, whereas 28 per cent stated they feared their colleagues will consider they’re much less succesful. Virtually 1 / 4 expressed considerations about being  missed for promotion.

Caroline Rheubottom, world co-chair of the Intuit Ladies’s Community, says the menopause shouldn’t be one thing individuals are afraid or uncomfortable to speak about, particularly within the office.

“Actively offering and selling particular help won’t solely give these affected sensible assets, but in addition assist them to talk up and tackle a few of their considerations,” she stated.

Intuit QuickBooks has revealed plans to hitch the Menopause Friendly Accreditation, an unbiased physique aiming to alter the best way individuals take into consideration menopause and assist employers put the correct help in place.



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UK Banks Are Failing To Respond to the Cost of Living Crisis Correctly; Finds CRIF Research

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Cost of living crisis


Customers throughout the UK are turning to their banks for monetary help amid the crushing price of residing disaster; new CRIF analysis finds. 

The report printed by CRIF surveyed shoppers in nations throughout the continent together with France, the Czech Republic, Italy, Germany, Slovakia and the UK, to higher gauge basic attitudes in the direction of monetary providers and the way suppliers can higher mitigate the rising price of residing.

The outcomes from the UK particularly pointed to a consensus that banks needs to be doing extra to assist their prospects at a time when budgets are being stretched to their restrict.

Whereas the vast majority of folks within the UK plan to chop again on each important and non-essential spending, just below one in 5 folks nonetheless plan to borrow extra within the subsequent 12 months to assist them handle the rising price of residing. This determine represents the very best recorded in Europe.

Though 64 per cent see the federal government as having an obligation to assist folks throughout troublesome monetary occasions, 57 per cent assume that this responsibility also needs to come from the banks.

Regardless of this, 64 per cent nonetheless assume that banks and different monetary suppliers aren’t doing sufficient to assist their prospects throughout these troublesome financial occasions.

However what do European shoppers really need their banks to do?

Forty per cent known as for extra tailor-made merchandise, 37 per cent needed cash administration recommendation, 1 / 4 need banks to enhance their digital providers whereas a 3rd search saving assist.

Along with this, belief in monetary providers amongst European shoppers stays a key challenge and is performing as a barrier to enhancing providers and bettering reputations.

Slightly below one in 5 fear that banks will try and promote them merchandise which aren’t proper for them, and the same quantity really feel they don’t have their finest pursuits at coronary heart.

Relating to their knowledge, 56 per cent fear about how this data is utilized by banks and different suppliers, with shoppers within the UK being essentially the most involved of all Europeans at 63 per cent.

That is regardless of an acknowledgement from shoppers of the advantages knowledge sharing can deliver, with 35 per cent of individuals within the UK saying they’d be ready to share extra of their knowledge if it improved their capacity to borrow or entry greater credit score limits.

Practically half could be keen to share extra data if it meant banks may warn them upfront of potential monetary points.

Sara Costantini, regional director for the UK and Eire, CRIF

Talking on how hundreds of thousands of UK residents are already contending with the growing price of residing, with one in 5 now anticipating to borrow extra over the following 12 months, CRIF’s regional director, Sara Costantini explains how the vast majority of folks within the UK really feel lenders aren’t doing sufficient to assist.

In keeping with Costantini, shoppers wish to see banks providing extra tailor-made services that meet their particular wants, in addition to methods to decrease their payments and to proactively flag any monetary points on the horizon.

“Improvements like open banking make this a risk,” she feedback. “The entire monetary sector must work collectively to enhance buyer understanding and capitalise on the advantages improved knowledge and analytics can deliver.

“Solely by doing so can we guarantee extra folks get the providers and assist they should climate these making an attempt occasions.”



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