Central Bank governor Hector Valdez Albizu highlighted the fast growth in the number of Dominicans using digital banking. While in 2014 Internet banking users in the country were but 1.4 million, after Covid-19, the number of users has escalated to 5.9 million as of September 2022. The number of users increased considerably due to the limitations to in-person banking during the Covid-19 pandemic months.
Valdez Albizu shared the data when offering the talk “Regulatory trends in digital banking, information security, cybersecurity and financial innovation (Innovation Hub)” during the celebration of the Latin American Congress of Technology and Financial Innovation (CLAB) 2022, an event organized by the Latin American Federation of Banks (FELABAN).
Valdez Albizu gave details of the digital transformation process the Dominican financial system is undergoing. He said the Monetary Board approval of initiatives aimed at encouraging the use of digital channels for financial products and services paved the way for the advances. He mentioned the country’s first fully digital multiple bank, a Banco Popular affiliate, is already operating here. “This is a milestone in the history of the Dominican financial system, and I am sure it will not be the only one,” he said.
He mentioned that in 2018 there were 20 financial technology companies, while by 2022 there are 50, providing services in segments such as payments, personal and business finance management, alternative financing, financial assets and capital markets.
Valdez Albizu indicated that the Central Bank has implemented actions aimed at strengthening the cybersecurity and information security functions of all regulated entities to contribute to the protection of the technological platforms of the direct and indirect participants of the Dominican Republic Payments System (SIPARD).
He spoke of the Sectoral Cyber Security Incident Response Center for the Financial and Payments Sector (SPRICS), under the administrative dependence of the Central Bank, which came into operation in 2020. Its objective is to offer support in mitigating the effects and propagation of possible cybersecurity events, which in turn could become a systemic or reputational risk. It currently has 80 connected participants: banks, securities markets and payment system administrators.
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Central Bank
29 November 2022