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Open Banking and Open Finance. Levers for creating hyper-personalized financial services.

In this new edition of Fintech para todos via LinkedIn Live, our CEO, David Conde, debated with Julio Sanz Galindo and Ángel Barriopedro about the scope of these concepts and their possibilities in Latin America.

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Julio Sanz is CEO of Puntos Clave and is responsible for guiding many companies in defining their digital strategy. Ángel Barriopedro is Head of Business Development in LATAM and an expert in consultancy and business advice. 

To begin with, Julio asked our CEO if he considers that there is a financial revolution in Latin America due to open banking, and how he sees Colombia being affected by the future regulation in this regard. Our CEO explained how new developments that analyze and categorize transactions offer endless and revolutionary opportunities for banks and insurers. All this is possible thanks to open banking, he said. As an example, David explained the functionality of our categorisation engine, COCO, which is able to deeply understand banking data and create –for example– a PFM so the user can see a full picture of their finances and receive recommendations to improve their financial situation. 

Improve your financial health with Open Finance

One of these recommendations could include a micro-savings programme to increase their financial health with little effort. Banking and insurance institutions that show their customers a way to improve their day-to-day lives position themselves as allies and achieve greater engagement. Automatic rules, purchase round ups, gamification modules and personalisation of goals are aspects that improve user experience and increase the time spent on banks and insurers digital platforms. There is no doubt that LATAM is beginning to apply these technologies with great results for companies and consumers.

At this point, Julio introduced the subject of open banking legislation and David took the opportunity to explain how European regulation has been adapting to the different countries. He took the opportunity to clarify that the main difference between what is happening in Latin America and Europe is that the second one emphasizes payment data, while the first one is focusing on open finance. It was then when a reflection of the potential of transactional data came up. A user is describing his or her consumption habits with every transaction and this offers unlimited potential to get to know customers better. 


From their ability to save, lifestyle, favorite restaurants or health-related expenses. When we put all this data at the disposal of businesses, they can offer user experiences that are much more tailored to their lifestyles. David explained recent improvements in cybersecurity and talked about 256-bit connections, an encrypted connections that, together with official certifications, offer greater guarantees to consumers. In the case of Coinscrap Finance, David explained that having two ISO certifications ensures the protection of the systems and the information processed.

Hyper-personalization of Open Finance: the specialty of Coinscrap Finance

Julio then took the opportunity to ask him about a relevant concept that really sets Coinscrap Finance apart: working with a focus on the principles of behavioral economics. The Nobel Prize in Economic Sciences was awarded in 2017 to Richard H. Thaler for his contributions to the field. David then spoke about the need for banking and insurance companies to help people achieve their financial goals. “To get people saving, you need automatic rules,” he explained, “as in the case of the Santander Piggy Bank, a micro-savings product we developed for the Bank that has achieved more than 161 million euros saved in less than a year”.

This led them to return to the issue of hyper-personalisation. In the specific case of Mexico, David pointed out how open banking is growing very rapidly, both in terms of credit risk, instant payment and multiple concept proofs that offer each customer precisely what they need at the most appropriate moment, guaranteeing the success of the financial product. Despite the fact that official regulation is still a long time coming, all those present agreed that the advance of open banking and open finance is unstoppable.

Banco Santander has been a great success thanks to its Santander Piggy Bank

Information and regulation of fintech in LATAM

It was then time to listen to Ángel, an experienced business consultant in Europe and Latin America, who gave us his views on the importance of access to information for all types of companies and fintechs interested in creating valuable products and services. Financial information meets innovation to increase the competitiveness of companies in a saturated market and it is vital to create a secure ecosystem based on open banking and backed by official regulation. David agreed and spoke of the need to create a regulatory framework that encourages innovation and promotes embedded finance, which will help benefit society as a whole due to the hyper-personalisation of recommendations.

They also talked about how to be able to make projections of income and expenses in order to, for example, anticipate an overdraft, calculate how much a user should save to retire in the same living conditions they enjoy now, etc. The same goes for geo-localised shopping: if we suddenly have an unusual shop within the transaction we can notify the customer to check if it is correct, or warn them that they are close to one that offers them an advantageous cashback.

David highlights the importance of cutting through superfluous communications and contacting the customer at key moments. All three agreed on the need to put the user at the center of the business strategy to ensure success. There is no doubt that open banking and open finance are making rapid progress in LATAM and Coinscrap Finance will be there to improve the financial situation of many users.

See you soon!

We are very grateful to Julio Sanz for having us at Puntos Clave and to Ángel Barriopedro for his analysis of the situation in Colombia. We hope to repeat soon, in person and with success stories in the country that we will share with all of you.

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