Open Finance, Policy Recommendations for Maximum Effectiveness in Latin America and the Caribbean

The Inter-American Development Bank (IDB), the leading multilateral development institution in Latin America and the Caribbean, supports economic and social development across the region through innovative financing, market-strengthening initiatives, and digital transformation. As financial ecosystems evolve, Open Finance has emerged as a transformative model that allows consumers to securely share financial data and access products across banks and non-bank providers. While global adoption is accelerating, only a handful of LAC countries have established Open Finance regulations, and the region faces critical decisions about how to design frameworks that promote competition, efficiency, and inclusion.

This project will support the IDB’s Connectivity, Markets and Finance Division in evaluating global Open Finance models and assessing Brazil’s experience—the region’s most advanced case—to distill lessons for LAC policymakers. The team will compare regulatory approaches in leading jurisdictions such as the UK, Singapore, and Brazil; analyze impacts on payments, investments, and credit; and conduct quantitative assessments of how Open Finance has influenced credit supply using regression analysis. The team will then develop actionable policy recommendations, including regulatory frameworks, digital infrastructure needs, and institutional capacity-building strategies to guide LAC countries in designing effective, inclusive Open Finance ecosystems. The final deliverables will help the IDB shape regional guidance and support governments seeking to modernize financial markets and expand access to high-quality financial services.