Given the dynamic intersection of technology, finance, and regulatory landscapes, 2023 unfolded as a pivotal chapter in the financial world. Drawing inspiration from the thoughtful discussions on our monthly podcast series, Integro Talks, we unveil the top risk management insights garnered from the podcast episodes this past year.  

1. There is a fintech revolution happening in Central America 

The financial industry is undergoing a transformative shift, and Central America is emerging as a focal point for fintech innovation. The rise of artificial intelligence, machine learning, and robotics streamlines financial processes, enhances efficiency and fosters financial inclusion. The high adoption rate of smartphones in countries like Guatemala provides a substantial user base for fintech applications, presenting both great opportunities and challenges. 

2. The power of financial innovation reigned 

Financial innovation fueled by technologies like blockchain and artificial intelligence, took center stage. True innovation lies not only in technology but in solutions that empower individuals. Democratizing access to financial services, enhancing financial literacy, and fostering entrepreneurship have become  key themes, unlocking untapped potential and driving economic growth.

3. Legal shifts affected the Florida banking landscape 

Florida’s legislative landscape witnessed key changes with the introduction of SB 264 and the Anti-ESG Bill (HB3). SB 264, also known as the Interests of Foreign Countries bill, imposed restrictions on real property ownership by foreign principals from select countries, while HB3 reshaped customer onboarding processes for financial institutions by prohibiting environmental, social and governance (ESG) criteria in customer acceptance protocols, introducing individualized risk assessments, and a new annual certification process.

The evolving political and regulatory environments, exemplified by Florida’s legislative changes, posed both risks and opportunities. Florida’s financial institutions found themselves at the intersection of state and federal laws, navigating complexities in compliance requirements and potential conflicts between conservative-leaning state legislatures,  federal policymakers, and home-country regulatory expectations for international banks operating in Florida.

4. International business in Latin America affected the landscape 

Latin America, historically a vital destination for international business, underwent a shift as global superpowers China and Russia expanded their influence in the region. Their investments promised economic opportunities but also brought complexities such as political intricacies, data security concerns, sanction risk exposure, and geopolitical tensions, posing challenges for businesses operating in Latin America.

China and Russia’s growing involvement in Latin America emphasized the need for organizations to develop a nuanced understanding of risk exposure and adopt strategies aligning with long-term business objectives.

5. Puerto Rico’s International Banking Entities need adaptive strategies

Against the backdrop of enhanced compliance and capital requirements, international banking entities in Puerto Rico are navigating a changing landscape in the wake of recent scandals involving compliance deficiencies. These deficiencies  led to increased regulatory scrutiny by FinCEN, demanding a cultural shift in organizational ethos. Adapting to high capital standards and stringent compliance protocols became imperative, signaling a proactive approach by the local regulatory authority for sustained success and manageable risk for the market.