Bank is drawing up plan for commercial deals to access data via APIs, says chief innovation officer
While Mexico’s regulators fine-tune open banking regulations, Citibanamex is already moving ahead. The retail and corporate lender piloted its application programming interfaces (APIs) with a government department in June. Now, it is working on a commercial strategy for broader use of the APIs.
“We have found a lot of appetite in tech companies for whom APIs are pretty natural things to use on a day to day,” said Juan Guerra, Citibanamex’s chief innovation officer, referring to large Silicon Valley-based firms. Comparison websites are also interested in tapping into the bank’s APIs, he said.
Citibanamex is plotting how it can best give startups access.
“We’re thinking of what should be our strategy to approach the independent developer community. Not just in Mexico, but internationally. We’ll be working on that this year.”
Citibanamex’s APIs can be used to access account data and manage cards, among other services. Currently they are only available for use testing environment, without real client data.
The bank is trying to integrate best practices from other jurisdictions, said Guerra, who also leads the Mexican banking association’s liaison with regulators on open banking and fintech. And while some APIs will be common across the countries where Citi operates, differences in the core banking systems and regulations means that each is developed locally.
Meanwhile, Guerra said he expects Mexico’s regulatory sandbox to take some time to prove its worth.
The sandbox, introduced in Mexico as part of its Fintech Law, allows developers to test fintech innovations on a small scale without going through a full regulatory sign-off process. The UK’s experience with a sandbox has shown it can take a few years for it to make an impact.
“[The parties] won’t really know at the beginning what sort of project they should be submitting to be reviewed,” he said. “The regulator may not have appetite to test certain things – but maybe for other [projects] they will. I think it’ll be a process of learning by doing. There’s only so much you can leapfrog by learning from other jurisdictions.”
Despite the likely lag, having a sandbox is valuable to foster innovation, he said. And he says he is keen to get started: “I already have a couple of ideas that I’d love to run through a sandbox.”
Panamanian bank Banistmo is testing gamification and QR payments
Banregio integrates e-commerce and deliveries into its app
Innovations on top of old tech amplify challenges for bank cybersecurity in Argentina
Sao Paulo-based neobank prioritizes data analytics, shuns blockchain
Digital lending startups set to get cheaper, easier funding as investors look at new asset classes
Banks and startups in Latin America are using new technology that will cut costs for cross-border payments and currency conversion
How well do you know the strategies of your competitors when it comes to digital transformation in Latin American banking?
Take our quiz to see!
Can I bring you dinner?
Which bank is tapping its POS network and building APIs to offer a delivery service that it hopes will boost client loyalty?
New challenger bank
A new Brazilian challenger bank called C6 Bank is close to launching. It’s billing itself as the #NextBigFin. The bank is backed by the chairman of which traditional bank?
Mexican banks are starting to use artificial intelligence tools. What’s the main application of the technology currently in Mexican banks?
What’s the biggest digital threat to traditional banks today?
Seems you’re a bit behind on what the rest of the market is doing…
Why not sign up for iupana‘s weekly newsletter to get exclusive news and analysis each Monday on how technology is transforming financial services in Latin America and the Caribbean? (It’s free!)
Not a bad effort…
Want to improve your score for next time? Sign up for iupana‘s weekly newsletter to get exclusive news and analysis each Monday on how technology is transforming financial services in Latin America and the Caribbean. (It’s free!)
Great effort – you’re clearly an expert in technology in financial services in Latin America!
Show your friends and colleagues on social media how well you did with these handy sharing buttons.
- Latam fintech defined by regulatory advances in 2017, say experts
- Old core, new services: Inside Banistmo’s digital strategy
- In a crowded market, BCI bets on mobile payments dominance
- Banks bulk up cybersecurity as sophisticated threats reach LatAm
- Ex-BTG Pactual partners build #TheNextBigFin team
- Nexoos gets pre-Series A round, preps for banking license