Fintech in Venezuela: The True Scope of Fintech

Fintech in Venezuela

Technological innovation for the banking sector: The true scope of Fintech

In Venezuela, the term "Fintech" is used for almost any application that handles money and offers financial services (such as Cashea, PagoDirecto, UbiiPagos, among others). However, regulations establish that a "Fintech" is much more than just having an application: it is a regulated category with specific responsibilities before the Office of the Superintendent of Banking Sector Institutions ("SUDEBAN").

Context: SUDEBAN's Resolution N° 001-21 regulates Financial Technology Institutions of the Banking Sector ("ITFB"). This Resolution aims to ensure that banking technological innovation occurs within a framework of legal and operational security to protect the financial system, categorizing ITFBs as providers of technological services exclusive for banks.

What should we clarify?

• ITFBs as regulated Fintechs: Not every financial technology company is an ITFB. To become one, a formal authorization from SUDEBAN is required, following a favorable opinion from the Superior Body of the National Financial System (OSFIN), under the condition that the ITFB's clients are directly the banks.

• Services that ITFBs can offer: ITFBs can provide, among other services, the opening of bank accounts with new technologies, software and hardware for banks, compliance and risk management software, as well as Bank as a Service (BaaS) to enable banks to operate "new business models" integrating technological financial services.

• ITFB vs. Unregulated Fintechs: A Fintech in Venezuela does not require a SUDEBAN license when its client is directly a person other than a Bank and does not engage in activities characteristic of an ITFB or payment services regulated by the BCV.

Keywords: Fintech, ITFB, SUDEBAN, banking as a service, financial innovation.

Ágora Abogados S.C. advises its clients on the design and structuring of Fintech solutions, obtaining authorizations from SUDEBAN and the BCV, and regulatory compliance in the financial technology sector. Our team includes lawyers specialized in Venezuelan banking and financial law, with experience in the regulation of financial technology institutions and payment service providers.