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Banking around the world · Latin America & Caribbean

Latin America & Caribbean

Brazil's Pix, Colombia's Bre-B and open finance set by rule

This edition covers banking in Latin America and the Caribbean, led by Brazil, with Colombia, Chile, Peru and Argentina. Central banks here built instant payment rails people use every day, and Brazil made open finance a rule, not an option. Mexico is in the North America edition; the Caribbean appears where it adds to the picture.

Compare the regions
São PauloSantiagoBogotáPanama City

At a glance

80 billionPix transactions in Brazil in 2025, moving R$35 trillion (BCB, August 2026)
208.8 millionActive Open Finance Brasil consents (Open Finance Brasil dashboard, July 2026)
116 millionBre-B keys registered in Colombia in its first year (Banco de la República, October 2026)
19 million+Users of Yape, Peru's leading payment wallet (Yape, October 2026)
Latin America & Caribbean

The markets

BR

Brazil

Brazilian real (BRL), floating, 3% inflation target · São Paulo · Rio de Janeiro · Brasília

Central bank
Banco Central do Brasil (BCB): monetary policy and supervision of banks, cooperatives and payment institutions; owns and runs Pix. The CMN sets core rules
Supervisors
BCB for banks, cooperatives and fintechs; CVM for securities; SUSEP for insurance; ANPD for data protection
Payment rails
Pix (since November 2020, run by the BCB, 24/7), plus Pix Automático for recurring bills (June 2025); TED and boleto still used
Open finance
Mandatory for the largest institutions (Joint Resolution 1/2020); 800+ participants and 208.8 million active consents (July 2026)
Deposit protection
FGC: up to R$250,000 per person per institution or group, capped at R$1 million every four years; FGCoop for cooperatives
Digital banks
No separate licence: Nubank (110 million+ customers in Brazil) uses payment, credit and broker licences; Inter and C6 Bank are licensed banks
Islamic finance
No Islamic bank or window identified (2026); halal food exports to the Gulf create trade-finance links
CO

Colombia

Colombian peso (COP), floating, 3% inflation target · Bogotá · Medellín

Central bank
Banco de la República: monetary policy and payment systems, including the Bre-B instant layer; the SFC supervises banks
Supervisors
SFC for banks, financing companies, SEDPEs, insurers and securities; SES for cooperatives; SIC for data protection
Payment rails
Bre-B (fully live since 6 October 2025) links 227 institutions and five private instant systems; ACH and PSE carry bills and online payments
Open finance
Mandatory under Decree 368 of 2026, replacing the voluntary 2022 regime; SFC standards issued in phases
Deposit protection
Fogafín: up to COP 50 million per person per institution, incl. savings, current accounts, CDTs and e-deposits; Fogacoop for cooperatives
Digital banks
No separate licence: Lulo Bank is a licensed bank and Nu Colombia a financing company; Nequi and Daviplata began as bank wallets
Islamic finance
No Islamic bank or window identified (2026)
CL

Chile

Chilean peso (CLP), floating; many loans and deposits are indexed to the inflation-linked UF · Santiago

Central bank
Banco Central de Chile: monetary policy, financial stability and payment rules; the CMF supervises banks
Supervisors
CMF, the integrated supervisor of banks, insurers, securities and Fintech Law providers; SERNAC for consumers
Payment rails
TEF online transfers (since 2008, run by the CCA clearing house) credit in seconds; BancoEstado's CuentaRUT carries many everyday payments
Open finance
Created by Fintech Law 21.521 (2023); CMF standards issued, start postponed to July 2027
Deposit protection
No deposit insurer: a State guarantee under the General Banking Law covers demand deposits and, up to a UF cap, individuals' savings and time deposits
Digital banks
No separate licence: digital players run as prepaid issuers, bank brands such as MACH (Bci) or licensed banks
Islamic finance
No Islamic bank or window identified (2026)
PE

Peru

Peruvian sol (PEN), managed float; many loans and deposits are still in US dollars · Lima

Central bank
BCRP: monetary policy, de-dollarisation measures and payment rules, including wallet interoperability
Supervisors
SBS for banks, cajas, e-money issuers, insurers and pension funds, with UIF-Perú inside it; SMV for securities
Payment rails
Immediate transfers run by the CCE clearing house; Yape and Plin wallets interoperate under BCRP rules
Open finance
Early stage: the SBS is planning a framework
Deposit protection
Fondo de Seguro de Depósitos: up to S/123,000 per depositor per institution (September–November 2026), reset quarterly
Digital banks
No separate licence: bank-owned wallets lead, with Yape (BCP, 19 million+ users) and Plin (other banks)
Islamic finance
No Islamic bank or window identified (2026)
AR

Argentina

Argentine peso (ARS); most controls on individuals lifted in April 2025, and the peso moves within a central-bank band · Buenos Aires · Córdoba · Rosario

Central bank
BCRA: monetary and exchange policy, and supervision of banks and payment providers through its Superintendency
Supervisors
BCRA for banks, credit and payment providers; CNV for securities and virtual-asset providers; SSN for insurance; INAES for cooperatives
Payment rails
Transferencias 3.0 (2021): instant transfers and interoperable QR payments between bank (CBU) and fintech (CVU) accounts
Open finance
Decree 353/2025 creates an open finance system; BCRA standards pending
Deposit protection
SEDESA: up to ARS 25 million (2025 level) for peso and foreign-currency deposits at member entities
Digital banks
No separate licence: Brubank is a licensed digital bank; Mercado Pago, Ualá and Naranja X offer CVU accounts
Islamic finance
No Islamic bank or window identified (2026)

How banking is organised in Latin America and the Caribbean

Every market has its own central bank, but supervision splits two ways: in Brazil and Argentina the central bank supervises banks; in Colombia, Chile and Peru a separate superintendency does. Large private and state banks lead, and digital banks grow fast.

  • Brazil: the CMN sets the rules and the BCB details and enforces them. State-owned Banco do Brasil and Caixa sit beside Itaú Unibanco, Bradesco, Santander Brasil and BTG Pactual, and cooperatives such as Sicoob and Sicredi.
  • Brazil scales its rules: institutions sit in segments S1 to S5 by size and risk, so smaller firms meet lighter requirements.
  • Colombia, Chile and Peru split monetary policy from supervision: the SFC, the CMF and the SBS oversee banks and insurers. Bancolombia and Credicorp also run banks abroad.
  • Argentina: state-owned Banco de la Nación Argentina is the largest bank, beside private groups such as Galicia and Macro.
  • Caribbean: the Eastern Caribbean Central Bank serves eight members and has held the EC dollar at 2.70 to the US dollar for 50 years; CIMA supervises the Cayman Islands' international banks.

Payments and open finance

Central banks led the change. The BCB built Pix and made large institutions join; Colombia launched Bre-B in 2025 to link existing private systems; Peru and Argentina made wallets and QR codes work together. Open finance is mandatory in Brazil and Colombia.

  • Brazil: 148 million people, about 86% of adults, and 12.8 million firms use Pix (BCB, August 2026).
  • Pix keeps growing: Pix Automático for recurring payments (June 2025), contactless Pix, and MED 2.0 to trace scam money across accounts (mandatory since February 2026).
  • Colombia: Bre-B moved more than COP 262 trillion in its first year, with 116 million keys for 36 million customers (October 2026).
  • Peru's Yape users can pay Plin users; Argentina's Transferencias 3.0 lets any bank or wallet app pay any QR code.
  • Open finance: Brazil has 208.8 million active consents (July 2026); Colombia made it mandatory in 2026; Chile starts in July 2027; Argentina and Peru are preparing.

Fintech, digital banks and digital assets

Brazil is the region's fintech engine, with Nubank, Inter, C6 Bank, PagBank and hundreds of BCB-licensed firms. After cyberattacks and laundering cases in 2025, the BCB tightened licensing, capital and naming rules. The Bahamas (Sand Dollar, 2020) and Jamaica (JAM-DEX, 2022) run central-bank digital currencies.

  • Brazil created credit-fintech licences (SCD and SEP) in 2018; Nubank now serves more than 110 million customers in Brazil.
  • Unauthorised payment institutions had to apply between 1 and 31 May 2026 (BCB Resolutions 494 and 495); higher capital phases in from July 2026 to December 2027.
  • Joint Resolution 17 (November 2025) reserves 'banco' and 'bank' for licensed banks; fintechs had 120 days to file renaming plans.
  • In November 2025 the BCB switched off the blockchain platform of its Drex pilot to rethink the design; prudential rules for virtual-asset providers apply from January 2027.
  • Chile's Fintech Law 21.521 (2023) brings seven tech-based services, such as crowdfunding, into a CMF register; Colombia's SEDPE licence and Argentina's CVU accounts open payments to non-banks.

Rules a bank must map here

Banks apply Basel III, AML/CFT laws in line with FATF standards through the regional body GAFILAT, modern data-protection laws and firm consumer rules. None of the five markets is on the FATF increased-monitoring list (June 2026); Bolivia, Haiti, Venezuela and the British Virgin Islands are.

  • Brazil: CMN Resolution 4,966 on expected credit losses (from 2025) and cyber-security rules; AML Law 9,613/1998 with COAF; the LGPD data law (13,709/2018), enforced by the ANPD.
  • Brazil also: rules for technology providers (PSTIs), with R$15 million minimum capital and a R$15,000 Pix and TED cap for unauthorised or PSTI-connected firms; Resolution 518 against pooled accounts.
  • Colombia: the Organic Statute of the Financial System, SFC rules including the SARLAFT AML system, UIAF, Law 1581 of 2012 on data and Decree 368 of 2026 on open finance.
  • Chile: the General Banking Law, moved to Basel III in 2019; Fintech Law 21.521; AML Law 19.913; Cybersecurity Law 21.663 (2024); data Law 21.719 from 1 December 2026.
  • Peru: Law 26702 and SBS rules, and data Law 29733 with a new regulation since March 2025. Argentina: Financial Entities Law 21.526, AML Law 25.246 (reformed 2024) and data Law 25.326.

What operations teams wrestle with

Instant rails run day and night, so fraud, disputes and liquidity are real-time work. Brazil learnt hard lessons from attacks on technology providers in 2025.

  • Scams: MED 2.0 traces scam money across several accounts and gives customers a dispute button in the app, so banks must block funds along the chain.
  • Third-party risk: in July 2025 criminals used an insider's credentials at C&M Software to divert more than R$800 million via Pix; Sinqia was hit weeks later.
  • Laundering: after the 2025 Carbono Oculto investigation, the BCB requires prior authorisation, a real head office and the closure of pooled accounts that hide third-party money.
  • Failure planning: after Banco Master's liquidation (November 2025), the FGC began its largest payout, about R$40 billion to some 800,000 creditors, in January 2026.
  • Indexation and dollars: Chile prices many loans in UF and Peru runs sol and dollar books side by side; Caribbean banks work hard to keep correspondent banks.

How SMEs get financed

Banks lead, helped by public guarantee funds and development banks that share the risk. Digital receivables and e-invoices let firms borrow against what they are owed, while cooperatives in Brazil and microfinance lenders in Peru reach the smallest firms.

  • Brazil: Pronampe, permanent since 2021, backs bank loans to micro and small firms with the FGO guarantee fund; BNDES lends through partner banks.
  • Brazil: card receivables are recorded with registrars and invoices can be electronic duplicatas, so firms can pledge future sales; Sicoob and Sicredi serve many small towns.
  • Colombia: the Fondo Nacional de Garantías guarantees SME loans and Bancóldex lends through banks; e-invoices can be traded through the RADIAN registry.
  • Chile: FOGAPE, a State guarantee fund run by BancoEstado, and CORFO back SME loans. Peru: Mibanco, municipal cajas and COFIDE serve micro and small firms.
  • Argentina: reciprocal guarantee companies (SGRs) and electronic cheques (ECHEQ) discounted on the market give SMEs short-term funding.
Islamic finance: an eye opener

Islamic finance: small, with real links

Islamic finance is very small here, and we say so plainly: we found no Islamic bank or window in the five markets and no sukuk from a Latin American issuer. The links are real, though: Brazil sells large volumes of halal-certified food to the Gulf.

  • Five markets: no Islamic bank, window or deposit product identified (2026); laws are written for conventional products, so any offer needs careful legal and tax structuring.
  • Trade: Brazil is a leading exporter of halal-certified chicken and beef to GCC markets, which creates demand for trade finance in forms Gulf buyers know, such as murabaha.
  • Caribbean: Suriname's Trustbank Amanah offers a Hajj savings plan; Guyana and Trinidad and Tobago have long-standing Muslim communities, but we found no Islamic bank there.
  • Funding: Gulf investors are already active in the region's companies and infrastructure; sukuk could one day widen that funding.

What it offers everyone

Customers

Families who avoid interest gain a formal way to save and to buy a home or car. The price is fixed at signing, financing is tied to a real asset, and late charges go to charity.

Banks and financiers

Asset-backed trade finance suits exporters selling to the Gulf, and a niche offer can win loyal customers. Gulf partner banks can bring structuring know-how.

Savers and investors

Profit-sharing accounts and sukuk link returns to real assets and disclosed risks, with ethical screening.

The economy

Credit follows real trade and assets and excessive speculation is excluded, tying finance to production and exports.

A concrete opening: Brazil's halal exporters already sell to Gulf buyers. A murabaha trade-finance line from a Brazilian bank with a Gulf partner would be a practical first step.

Working with banking teams here

Working with banking teams in Latin America and the Caribbean

Relationships come first: expect warm greetings, real interest in who you are and time for coffee before the agenda. Large banks decide through committees and senior sponsors. These are common norms; individuals differ.

Common norms; individuals differ.

  • Brazil works in Portuguese, not Spanish: material in Portuguese shows respect, and many senior bankers in São Paulo also work in English.
  • Colombia, Chile, Peru and Argentina work in Spanish; titles such as Doctor or Ingeniero are common in Colombia and Peru.
  • Meetings often open with personal conversation, and lunch is an important business moment; summarise what was agreed in writing afterwards.
  • Large state and private banks move through formal approvals; map sponsors and decision-makers early and allow time for committees.
  • Plan around Carnival in Brazil, Holy Week and the January–February summer break; the Caribbean works mostly in English.
Learning from each other

What the GCC can learn from Latin America & Caribbean

  • From Brazil: a central bank that built a free instant rail for people, made large institutions join, then added recurring, contactless and anti-fraud features.
  • From Colombia: a central-bank layer that connected existing private instant systems instead of replacing them, reaching 116 million keys in a year.
  • From Peru and Chile: microfinance at scale through cajas and Mibanco, wallets made to work together, and UF-indexed lending that keeps long-term credit workable.

What Latin America & Caribbean can learn from the GCC

  • Islamic finance know-how: Shariah governance, AAOIFI standards and murabaha trade finance for exporters selling to the Gulf.
  • Digital-bank licensing in clear stages, and regulatory sandboxes, as run in Saudi Arabia, Bahrain and the UAE.
  • A national digital identity for onboarding, such as Saudi Arabia's Nafath, linked to bank KYC to cut fraud on instant rails.
The other regions
GCCIslamic finance at scale, national instant rails and regulators that move fastMENAEgypt's scale, Jordan's shared rails and Morocco's bridge to AfricaEuropeWhere global banking rules are written: a banking union, a single rulebook and instant euro payments by lawUK & wider EuropeLondon's rulebook, Swiss and Norwegian rails, Türkiye's scale and Ukraine's resilienceNorth AmericaDeep markets, many banks and payment rails modernising across three economiesSub-Saharan AfricaSouth Africa's instant rails, Kenya's mobile money, West Africa's shared central bankSouth AsiaIndia's public rails, Pakistan's Islamic shift and Bangladesh's mobile moneyCentral Asia & CaucasusKaspi's super app, Astana's financial centre and new Islamic windowsEast & Southeast AsiaScale, speed and public rails: five markets setting the pace of digital bankingAustralia & NZTrans-Tasman banking: real-time rails, data rights and firm conduct rulesCompare the regionsAll eleven regions in one table

Further reading

Country register: central banks, supervisors, AML, data protection and deposit insurance, country by country →

Facts checked in October 2026. Banking rules change often, so check the official source before you rely on a detail. Bank and company names show the market; they do not imply any relationship with MTWAFIQ.