CNBV fines ABC Capital bank for failing to comply with the first phase of open finance

The financial ecosystem is waiting for National Baking and Stock Commission (CNBV) give signals regarding the second stage of the open finance model (open finance), where different figures will be able to share information to strengthen the offer of financial services; however, the authority has begun issuing fines for not complying with the first phase of this scheme.

A few days ago, the CNBV issued a sanction for the banco ABC Capital for not having standardized computer application programming interfaces established for ATMs. The amount of the fine was for 1.3 million pesos.

“At the time of the review, it did not have standardized computer application programming interfaces (APIS) established for ATMs,” the description of the conduct for which the bank was fined can be read.

With this, ABC Capitalwhich is awaiting authorization from the CNBV to be acquired by the Argentine technology Ualá, it becomes the first financial entity to be penalized for not complying with the regulation regarding the open finance model.

Antecedent

In March 2018, the law to Regulate Financial Technology Institutions, known as Ley Fintech. In it, comes the way for financial institutions, money transmitters, credit information companies, clearing houses and fintech companies to establish APIS in order to share three types of data between them.

• open financial data: Those referring to information on products and services offered to the general public, location of their offices and branches, ATMs and other access points to their products and services.
• aggregated data: statistical information related to operations carried out by entities, without having a level of disaggregation that can be identified with personal data or transactions of a person.
• transactional data: which are those related to the use of a product or service, including deposit accounts, credits and means of disposal contracted on behalf of the clients of the entities. These data may only be shared with the prior express authorization of the same.

In this context, the CNBV, together with other authorities were obliged to issue secondary provisions for the sharing of these three types of data. On June 4, 2020, the authority published in the Official Gazette of the Federation the provisions regarding open financial data, where it established a one-year period for all entities to implement the APIS in this regard.

Thus, all the financial institutions mentioned in the Ley Fintech they had until June 4, 2021 to implement their APIS regarding open financial data.

In this stage, ABC Capital failed to comply with the provisions of the Fintech Law, for which reason it was subject to a sanction by the regulator.

From June 2021 to date, the regulator has issued 33 sanctions for violating the Fintech Law, for a total of 62 million 138,350 pesos. Most of the fines have been for using expressions referring to concepts or products reserved by financial regulations, that is, for using the term “fintech” without having the approval of the regulator, which can mislead the user.

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