Banking and financial services institutions are key drivers of economic growth globally--as brokers between consumer savings and business investments, and as loan and money suppliers. However, the accelerating pace of technology innovation, the emerging influence of big technology companies, and dramatic changes in consumer behavior have disrupted the banking and financial services ecosystem altogether.

This is where financial services regulators come in, with a big challenge ahead of them. As an increasing number of financial institutions adopt new technologies and digitally transform themselves, the institutions, their customers, and stakeholders need assurance that their data is secure and their electronic transactions are lawful.

In this report, we consider the importance of financial regulators in the process of Latin America’s (LATAM) financial system transformation. We look at key challenges they face and at examples of strong and effective regulations already in place in the region. Finally, we consider some action points for financial regulators’ next steps.