Jason Simon highlights how Costa Rica’s Banco Nacional is embracing FinTech

The website of the Costa Rica Center for Financial Innovation (CFI) started its operations in April, with the aim of having a meeting portal between the promoters of FinTech development in the country and public entities responsible for supervising the financial system. Costa Rica’s Banco Nacional is among the institutions involved, and according to FinTech expert Jason Simon, the public entity could benefit from this new relationship.

Banco Central de Costa Rica (BCCR) and the National Council of Supervision of the Financial System (Conassif in Costa Rica) were responsible for implementing the initiative. It is part of a space where those promoting technological banking innovations can find a guide in accordance with the regulations of the Costa Rican financial system. Banco Nacional has since become interested and the relationship with FinTech is now much more guided.

“Since April 19, individuals and banking entities can log into the website to ask questions,” Rodriguez said. “The new tool seeks to clarify doubts of those who carry out an economic, technological development and to confirm whether the initiative to be developed is in accordance with national legislation and regulation.”

Rodrigo Cubero, head of the BCCR, said that the Financial Innovation Center will help achieve the goal that the FinTech industry is developing in a way that improves the efficient, transparent and competitive functioning of financial markets. Banco Nacional, for example, is one of the public institutions that has secured the best service in the country, so having access to FinTech solutions will fit like a glove in pursuit of that goal.

“Cryptoassets are also part of what we consider fintech, and the services that can be offered, in terms of means of payment, can be analyzed. The financial rehabilitation will take place in an environment of dialogue and consultation with the financial authorities when appropriate. But we do not envisage legislation on crypto-assets, but we envisage a regulation on compliance in matters of money laundering, said Cubero during the virtual presentation of the CFI.

Alberto Dent, president of Conassif, pointed out that the group was created to analyze the benefits and risks associated with the rapid technological advances. He added that if necessary, they will seek to adapt the regulatory and supervisory framework to support financial innovation while preserving the soundness and stability of the financial system.

In the middle of last year, Banco Nacional de Costa Rica incorporated the Engagement Banking platform as one of the first steps towards FinTech incorporation. The bank chose Backbase, the provider of the Engagement Banking platform, to expand its digital banking services. With this adoption, Backbase will use its single platform approach to modernize Banco Nacional de Costa Rica’s online and mobile banking platforms, thereby driving digital innovation through a personal banking experience across all channels, according to a statement.

“With the Engagement Banking platform, the entity will unify its online and mobile banking to offer frictionless and highly personalized experiences. All while operating on a secure, efficient and sustainable platform that is agile and scalable,” explains Simon.

In line with its commitment to promote social and economic development, the Government of Costa Rica has promoted financial inclusion by increasing the incorporation of the adult population, aged 15 and over, from 68% in 2019 to 77%, who have at least one bank account. The Backbase platform will give Banco Nacional de Costa Rica access to state-of-the-art technology and innovative industry-leading solutions.

The Engagement Banking platform will help Banco Nacional de Costa Rica implement customer-centric banking solutions and facilitate the integration of recognized key applications that improve engagement and drive growth among consumers. As society moves towards 100% digitization, financial institutions like Banco Nacional de Costa Rica are well positioned to streamline and simplify the online banking experience to expand and increase access to FinTech for individuals and SMEs.

About Jason Simon

Jason Simon is a FinTech and digital payments expert who got involved with cryptocurrencies when they were first introduced. He enthusiastically follows what’s happening in the evolving world of finance, excited by the prospects digital currencies offer global consumerism. When he is not involved in helping advance the digital payments space, he enjoys spending time with his family and improving the community.