Big Techs like Amazon, Google and Facebook will be able to request and see your financial data
This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.
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Large tech companies, such as Amazon , Google , Facebook , Apple and Microsoft, among others, will now be able to access your bank details thanks to the Open Finance model.
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Open Finance is a model for exchanging financial information between banks and any financial institution. As part of this scheme, in a financial department, you can add accounts from different institutions, combining the different formats they offer into one.
This model of data exchange is here to stay and spread throughout Latin America. In Mexico, it is included in the Fintech law, which establishes that more than 2,200 entities will be required to use application programming interfaces (APIS) to exchange information between them.
According to Gilberto PÃ©rez HernÃ¡ndez, director general of regulatory development at the National Banking and Securities Commission (CNBV), for now, Big Tech can only request data. The request for transactional data can only be made once they have the authorization of the CNBV.
PÃ©rez HernÃ¡ndez pointed out that in the event of failure to obtain said authorization, Big Tech will not be able to access the transactional information of their users and if they wish to access this data, the corresponding authority will ask them to meet certain requirements.
The Open Finance Regulation establishes that entities implementing APIS, or information exchange applications, can share open financial data with each other, such as the location of branches or ATMs; also aggregated data such as operational statistics of financial entities and transactional information of their users.
Said transactional information can only be exchanged if the users give their consent, failing which the entities should not use this data.
Why will these Big Techs be able to easily enter the financial services offer?
Thanks to its robust technological platforms.
Resources like big data help them better understand the trends and preferences of their users when shopping.
They can offer various services depending on the institutions in each country.