To obtain a banking license in Chile, generally, an applicant must provide the CMF with the following:

• A prospectus (prospecto)
• A business development plan for the first three years of operation
• A guarantee of an amount equal to 10% of the bank’s projected capital

In addition, the minimum paid-up capital of the bank must not be less than UF 800,000 (approximately USD 32,005,120). At the time of establishment of the bank, at least 50% of the capital should be paid up. There is no term for the payment of the remainder.

However, until the bank has reached this minimum capital amount, the bank shall maintain an additional basic equity capital of 2% of its risk-weighted assets, net of required provisions, over the minimum required by law of 4.5%, plus the additional specific requirements contained in Title VII of the Banking Act. Such percentage may be reduced to 1% when the bank’s shareholder’s equity reaches UF 600,000 (approximately USD 24,003,840).

Capital requirements must be satisfied in Chile by the local branch or subsidiary. In addition, the banking regulations contain requirements in connection with liquidity, cash, technical reserves and the ratio between assets and shareholders’ equity of banks.

A new bank’s founding shareholders must also comply with certain solvency and integrity requirements, as follows:

• Solvency – Maintain permanently a consolidated equity equivalent to the bank’s projected capital.
• Integrity – In broad terms, a shareholder must not have committed crimes, wrongdoing or questionable conduct that may endanger the stability of the bank and/or the safety of the depositors.

The provision of  Fintech services such as crowdfunding platforms, alternative transaction systems, credit and investment advice, custody of financial instruments, order routers and financial instrument intermediaries will require specific license granted by the CMF.  The requirements for each license are commensurate to the risk inherent to each type of Fintech service, and broadly speaking includes  proving to the CMF compliance with information obligations, corporate governance and risk management, operational capacity, minimum net-assets, guarantees, suitability of personnel and systems.

As for the license to issue and/or operate credit, debit and prepaid cards,  generally the applicant should meet requirements related to minimum paid-up capital and reserves, special business purpose, liquidity reserves,  and management and control policies, especially regarding liquidity, operational, technological and fraud risks, among others.