On February 7th, 2024, the Financial Superintendence (“SF”) issued Externa Circular 004, marking the first comprehensive regulation on Open Finance in Colombia. This regulation aligns with Decreto 1297 of 2022 and the National Development Plan 2022 – 2026. This Circular will act as the primary guide for entities supervised by the SF to open their systems with the aim of sharing financial consumer information in a standardized manner with other supervised entities or third parties.
This circular encompasses pertinent measures relating to: i) technological and security requirements that entities must adopt for the development of open finance; ii) specific obligations regarding the privacy and protection of personal data of financial consumers in open finance, and iii) monitoring duties of the supervised entities towards their information recipient third parties.
This development holds significant importance for the financial sector as it will enhance competition, particularly by democratizing financial services designed for consumers who encountered barriers in traditional financial systems. Moreover, it sets in motion the objective outlined in the National Development Plan to transition towards an interoperable system of open data.
