Fintech Regulation in Panama

Experts are discussing the regulation of Fintech companies in Panama. Osuna stated that although these companies are currently unregulated, their entry into the financial system must be managed to foster healthy competition. He noted that Fintech firms lack the experience or malice to navigate long economic cycles, unlike the traditional financial sector, which has become highly conservative since the 2008 financial crisis but is also more solid. Marroquin highlighted that the financial sector is key to this transformation. Osuna added that the crucial element is for bankers to learn from the agility of Fintech and for Fintech to learn from the formality and rigor of financial systems. The expert believes that instead of copying foreign models, Panama should invest in knowledge, including research, patents, and all work related to Information and Communication Technologies (ICT). "Economies go through recessions and control issues, so regulation must be in place to prevent risks to national economies," he emphasized. "Future sophistication in this sector is key, as you begin to see other actors in the context," the expert indicated. Osuna believes Panama should aim for the majority of its Gross Domestic Product (GDP) to come from the so-called "Knowledge Economy" in 10 to 15 years, similar to how the country approached the canal project. He cited Singapore as an example, which is 15 to 20 years ahead but started from a lower base than Panama. At this point, Edgar Osuna, Chief Data Analytics Officer at Iuvity, a digital evolution company serving financial firms, said that while digital transformation is unstoppable, it is always good to regulate it and have controls. This is the view of experts like Alex Marroquin from the Institute for the Acceleration of Artificial Intelligence, who affirms that the State has a significant challenge in this regard.