Ley de Bancos in Peru: New regulation brings changes and opportunities for the financial industry

Published on Jan 31 2023.

reading time 10 minutes reading

In March 2022, Ley General del Sistema Financiero y del Sistema de Seguros y Orgánica (LGFS)—also known as Ley de Bancos in Peru—was reviewed and presented promising modifications for the fintech industry. But what are those changes and the opportunities they bring for the banking and payment industry in Peru?

The good news is that the new regulation modernizes the Peruvian financial ecosystem in a moment that is favorable for the industry in the country. In this article, you’ll deep dive on the key points modified by Ley de Bancos in Peru, as well as the impact that is expected on the industry and their insights for those operating in this market.

Before detailing what’s new, we’ll get started by introducing the main characteristics for the Peruvian market so that you can understand how important those regulation changes are.


Rapidly-changing scenario and ongoing modernization for the means of payment industry in Peru


The study Land of Opportunity study, conducted by our Research team at Dock, shows a comprehensive diagnosis on the development level for the banking and payment industry. It also showcases opportunities and challenges in the main Latin American countries.

In Peru, a 52% banking rate for the population — individuals who indeed have an account at banks and fintechs — is a key point. Cash is still the most common means of payment, despite recent growth in e-commerce and electronic means of payment.


graphic on the use of payment methods at points of sale against e-commerce

graphic on the use of payment methods at points of sale against e-commerce

graphic on the use of payment methods at points of sale against e-commerce


The country's technological and financial progress is not greater only because of the difficulties in accessing the internet and the high number of unbanked in rural areas and lower classes. This scenario, however, seems to be about to change.

Important indicators of that transformation include an increase in the number of mobile lines, which is expected to reach 2 million by 2025 (GSMA 2021), and the rapid growth in the use of credit cards and services instant payment, such as Yape and PLIN.

Yape, launched in 2016, currently has approximately 8 million users, while PLIN, launched in 2020, has already reached 4 million users. The growing use of both of those services illustrates an expanded familiarity with digital platforms for Peruvians.

In this context the change of devices in Ley de Bancos in Peru has come to drive greater modernization in the banking and payment industry, facilitating the Financial inclusion of a significant portion of the population and intensifying competition.

Read also | Credit industry in Latin America: 4 opportunities for driving the industry


Ley de Bancos in Peru: Key changes and their impact


Law 26702, known as Ley de Bancos in Peru or Ley General del Sistema Financiero y del Sistema de Seguros y Orgánica (LGFS), was changed by Decree 1531, published on March 19, 2022.

We’ve chose some of the most important changes enforced by the new regulation to analyze and understand the consequences we may expect from it. Check it out!


100% digital operations authorized


The financial institutions looking to operate in the country won’t need to offer branches or offices to serve clients face to face anymore. This new requirement in Ley de Bancos in Peru drives new digital banks. to join the market and increases local competition..

It’s also important to mention another positive impact: reduced operational costs for institutions. Afterall, it will no longer be necessary to afford overhead costs and associated red-tape procedures so that an institution can start operating.


Introducing Credit Companies by Ley de Bancos in Peru


The reform in Ley General del Sistema Financiero has replaced the former Small and Micro Enterprise Development Entity (Edpymes) with Credit Companies.

Credit Companies are organizations authorized to conduct multiple operations related to financing, including by using their own resources, but unauthorized to take deposits from the public.

Authorized operations include Factoring as a Financial Tool for Managing Seasonal Fluctuations in Trucking, granting advances on debt verification documents, providing financial advising services, and more.

Following the example in Mexico involving Sociedades Financieras de Objeto Múltiple (SOFOM), the Credit Company model is expected to be used by fintech as an alternative to join the industry and diversify their activities in Peru.


Regulatory load simplified


The change in Ley de Bancos in Peru also promoted appropriate regulatory loads according to each institution’s risk profile. So companies that don’t take deposits from the public, such as Credit Companies, will be supervised in a simpler manner.

In practical terms, it represents less interference from  Superintendência de Banca, Seguros y AFP regarding issues such as opening/closing branches, settlements, and more.

That initiative is also expected to contribute to fueling new fintechs to join the market by reducing costs related to supervising and operating their activities. .


Changes in net worth composition


The changes in net worth composition aim to drive the adoption for Ley de Bancos in Peru to criteria set by the Basel III standard.

Apart from the worth requirements for mitigating risks in the industry, credit and operations, the change also reinforces the companies’ responsibility for keeping reserves to deal with systemic risk and market concentration.

It is basically an alternative to make it easier to enable activities in those institutions without compromising security initiatives in their operations..

Read also | Preventing fraud: how can you minimize risk and drive your business at the same time?


New players joining the industry


It is evident that the changes presented in Ley de Bancos in Peru all point to the same direction: incentive for new players to join the Peruvian financial industry, similarly to what has happened in other Latin American countries.

In Brazil, for instance, the regulating agency Central Bank of Brazil also considered that fintechs play a key role in improving efficiency and competition in the credit industry, by enabling faster transactions and less bureaucracy in the system.

Read also | Niche fintechs: The future of finances is built through inclusion and innovation


Ley de Bancos in Peru brings opportunities for the financial industry in the country


According to the study Land of Opportunity, , Peru currently has the highest expected growth rate among the Latin American countries interviewed.It is expected to reach 2022% and 2023% in 3,2 and 3, respectively.

That estimate was based on the fact that, since Q 2021, Peru has shown growth rates that are above pre-pandemic levels, stimulated by private investments and increased exports.


An open door for fintechs


The expected economic growth, associated with opportunities brought by the changes in Ley de Bancos Peru, has created a scenario that is especially promising for new fintechs building and joining the Peruvian market..

Afterall, it’s caused a favorable regulatory environment for those companies to penetrate a market still mainly unexplored: almost half of the Peruvian population (48%) doesn’t even have an account at a bank. In the current scenario, new players will have better conditions to customize and fairly price financial services so that they can capture new clients. Using innovating technologies will also be important so that they can attract the population in lower social classes and rural areas to use means of payment .

The Credit Company model, established in the new version for Ley General del Sistema Financiero, is another relevant facilitator. As mentioned, new fintechs will be able to benefit from the model to diversify their operations.


Dock is part of that transformation


As part of its expansion in Latin America, Dock officially conducts operations in Peru and is equipped to keep a close on eye and take part of that great growth, which will bring many benefits and improve financial inclusion for the Peruvian society.

There’s still a long way to go to promote access to financial services for Peruvian citizens. However, with Ley de Bancos in Peru, there’s also more room for innovation to help make it a reality.

While monitoring the most relevant news in the industry, Dock aims to be at the frontline of that change as a partner for companies looking to grow their business in the country through our complete, global platform for banking and payments!

Want to know to take part in that growth? Learn about our platform Dock One:


Ley de Bancos in Peru: Takeaways from this article


  • Law 26702, known as Ley de Bancos Peru ou Ley General del Sistema Financiero y del Sistema de Seguros y Orgánica (LGFS), was reviewed by Decree 1531, published on March 19, 2022.
  • Only 52% of the Peruvian population has a banking account, but that scenario is about to change, thanks to the new regulation.
  • The law brings important changes for the financial industry, such as authorizing 100% digital operations, introducing credit companies and simplifying regulatory load.
  • The changes point to more new players joining the market.
  • The expected economic growth, associated with the opportunities brought by modifications in Ley de Bancos in Peru, create a scenario that is especially promising for new fintechs to join the market.


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