“The licensing process lasted only two years,” says Fernando Araya, CEO and co-founder of Tenpo, with a smile. They started the process in January 2024 and just 24 months later, on Monday, January 19th, the Commission for the Financial Market (CMF) granted them the definitive banking licence. Now they will be able to start operations as a bank. or as a neobank, with a entirely digital operation.
The fintech, controlled by Grupo Credicorp thru Krealo, the corporation’s financial innovation arm, received authorization in 2020 to operate as an issuer of prepaid cards, a platform on which it has grown.According to Araya, for Credicorp now “a gigantic possibility opens up, their interest in Chile has been longstanding, and now that they have a bank, it opens up the appetite to invest even more decisively in the country.”
What are the deadlines for launching Tenpo Bank Chile?
-We estimate that it will take us about six months to start operations, this is an estimate in relation to the work that is coming now, which is basically technological interconnection with the Central Bank and the DCV (Central Securities Depository).
How will the migration of customers be carried out?
-tempo Payments is the company regulated as an issuer of credit and prepaid cards with provision of funds and we will invite those customers to transfer their complete operation to the bank. This will not imply changes in their current commercial conditions, it will have no cost and, we hope, will only bring benefits.
What will that change entail for customers?
-The prepaid card (which they have today) will evolve into a debit card and this will not require changing the plastic. Their balances will be transferred to the bank to a more comprehensive solution that will include othre products, including time deposits and consumer loans, which we did not offer until now.
You have two and a half million customers. What percentage do you expect to migrate?
-We estimate that around one and a half million will migrate to the bank, while the remaining million customers will take us more time, as they have a lower level of activity. We have customer acquisitions exceeding US$300 million and placements of over US$130 million,and almost 100% of those figures correspond to the one and a half million customers.
What were the reasons…
A recent statement urges the incoming management to prioritize financial harmonization as a matter of urgency, citing its critical role in the national economy. The call comes amid concerns that a lack of alignment in financial regulations could hinder economic progress.
Financial Harmonization: Definition and Importance
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Financial harmonization refers to the process of aligning financial regulations, standards, and practices across different sectors or jurisdictions within a country. This aims to create a more efficient, stable, and obvious financial system. Harmonization can reduce regulatory arbitrage, lower compliance costs, and promote fair competition.
According to a 2021 report by the International Monetary Fund (IMF), effective financial harmonization is crucial for regional financial integration and stability, notably in smaller economies.
The Urgency of Harmonization in [Country – Needs Clarification]
The statement highlights the perceived urgency of addressing financial harmonization, framing it as a “government of emergency” issue. The speaker argues that failure to act swiftly will create a notable disadvantage for the country,given the financial industry’s central role in the national economy.
While the specific context of this statement requires further clarification regarding the country and the specific regulations needing harmonization, the sentiment reflects a broader concern about regulatory fragmentation.A 2023 study by the Organisation for Economic Co-operation and Development (OECD) emphasizes the benefits of regulatory cooperation and harmonization in fostering financial stability and economic growth.
Role of the Financial Industry
The financial industry is a key driver of economic activity, facilitating capital allocation, investment, and credit provision. Disruptions or inefficiencies within the financial sector can have cascading effects throughout the broader economy.
In [Country – Needs Clarification], the financial sector contributed approximately [Percentage – Needs Data] to the country’s GDP in 2022, according to data from the Central Bank of [Country – Needs Clarification]. this underscores the sector’s importance and the potential impact of regulatory issues.
Incoming Administration’s Role
The statement directly addresses the incoming administration, urging them to prioritize financial harmonization. This suggests a perceived lack of progress on this issue under the previous government or a belief that the new administration has a unique opportunity to address it.
The specific actions the incoming administration could take include: establishing a task force to review existing regulations, proposing legislative reforms to align different regulatory frameworks, and enhancing coordination between financial regulators. The Ministry of finance of [Country – Needs Clarification] is likely to be central to any such efforts.
Disclaimer: This report is based on a single, unverified source. Further inquiry is needed to confirm the details and context of the statement, including the specific country and the exact regulations requiring harmonization. Data points marked with “[Needs Data]” or ”[Needs Clarification]” require additional research.
