Chile’s Comisión para el Mercado Financiero (CMF) is reconsidering the complete phase-out of “tarjeta de coordenadas” (security cards) for online transaction authentication, proposing a rule change allowing specific customer groups – those facing accessibility or digital literacy challenges – to continue using them. This move, prompted by concerns over financial exclusion, delays the full implementation of stronger authentication methods like two-factor authentication (2FA) and biometric verification.
The CMF’s U-Turn: Balancing Security and Inclusion
The original Norma de Carácter General N°538 aimed to eliminate the inherently less secure tarjeta de coordenadas by August 1, 2025, later extended to August 2026. Yet, the CMF’s consultation document, open for public comment until April 14, 2026, now suggests a more nuanced approach. This isn’t a full reversal, but a pragmatic acknowledgement that a blanket ban could disenfranchise vulnerable populations. Here is the math: approximately 15% of Chile’s population over 65 lacks consistent internet access, according to a 2024 study by the Universidad Católica de Chile, making them particularly reliant on older authentication methods.
The Bottom Line
- Delayed Digital Transition: The CMF’s decision postpones the full adoption of stronger authentication protocols, potentially slowing the pace of digital financial services innovation in Chile.
- Bank Compliance Costs: Banks will incur costs associated with identifying and managing “at-risk” customer groups eligible for continued tarjeta de coordenadas access, and reporting these groups to the CMF.
- Limited Impact on Fintech: The move has minimal direct impact on rapidly growing fintech companies already leveraging advanced authentication methods, but reinforces the need for inclusive digital solutions.
The Regulatory Landscape and Bank Responsibilities
Under the proposed modification, Chilean banks – the “emisores” – will be responsible for defining “objective criteria” to identify customer groups who can continue using the tarjeta de coordenadas. They must report these groups and their size to the CMF by August 1, 2026, with semi-annual updates detailing any changes. Crucially, customers removed from these groups cannot be re-added. But the balance sheet tells a different story: banks have already begun investing heavily in ARC (Autenticación Reforzada de Clientes) infrastructure, anticipating the original deadline. This delay requires them to manage two parallel systems, increasing operational complexity.
The ARC framework mandates at least two authentication factors: something the user *knows* (password, PIN), something the user *has* (token, OTP, mobile device), or something the user *is* (biometrics). The CMF’s website provides detailed information on the ARC requirements.
Criticism and the Digital Divide
The initial push to eliminate the tarjeta de coordenadas faced criticism from consumer groups like the Organización de Consumidores y Usuarios de Chile (OCU), who warned of exacerbating the digital divide. They argued that a “forced” digitalization could exclude vulnerable populations. “We are concerned that simply removing a familiar authentication method without providing adequate alternatives will leave many Chileans unable to access essential financial services,” stated Carolina Sepúlveda, OCU’s Director of Digital Inclusion, in a press release on March 15, 2026.
However, the CMF emphasizes that continued use of the tarjeta de coordenadas will *not* be considered “Autenticación Reforzada de Clientes,” meaning transactions authenticated this way may be subject to lower transaction limits or increased scrutiny. This is a key distinction.
Market Implications and Regional Comparisons
The Chilean banking sector, dominated by **Banco Santander Chile (NYSE: BSAC)**, **Banco de Chile (NYSE: BCH)**, and **Itaú Corpbanca (NYSE: ITCB)**, will need to absorb the costs of managing this transitional period. Although the impact on their overall profitability is expected to be minimal – analysts at JP Morgan estimate a one-time compliance cost of approximately 0.05% of 2026 revenue for each major bank – it highlights the challenges of balancing regulatory compliance with financial inclusion.
This situation mirrors debates in other Latin American countries. In Brazil, for example, Reuters reported in March 2024 that the central bank delayed the rollout of its new digital identity system due to concerns about accessibility.
Here’s a comparative snapshot of key financial metrics for the three major Chilean banks:
| Bank | Ticker | Market Cap (USD Billion) – March 30, 2026 | 2025 Net Income (USD Million) | 2026 Q1 Net Income (USD Million) |
|---|---|---|---|---|
| Banco Santander Chile | BSAC | 18.5 | 850 | 220 |
| Banco de Chile | BCH | 12.2 | 680 | 185 |
| Itaú Corpbanca | ITCB | 7.8 | 420 | 110 |
Expert Perspectives on the Regulatory Shift
“The CMF’s decision is a pragmatic compromise,” says Dr. Isabella Rossi, a financial technology consultant at McKinsey & Company. “Completely eliminating the tarjeta de coordenadas without addressing the digital divide would have been socially irresponsible. However, it’s crucial that banks invest in robust digital literacy programs to help customers transition to more secure authentication methods.”
“This isn’t about clinging to outdated technology; it’s about ensuring that financial services are accessible to everyone, regardless of their digital skills or access to technology.” – Dr. Isabella Rossi, McKinsey & Company.
the move could indirectly benefit companies specializing in biometric authentication solutions. **Thales Group (Euronext Paris: HO)**, a global leader in digital identity and security, could see increased demand for its biometric solutions in the Chilean market. Thales’ financial services division offers a range of authentication technologies.
Looking Ahead: The Future of Authentication in Chile
The CMF’s decision buys time, but it doesn’t solve the underlying problem of digital exclusion. The long-term solution lies in expanding internet access, improving digital literacy, and developing user-friendly authentication methods that cater to diverse needs. The CMF’s consultation process is a step in the right direction, but ongoing dialogue between regulators, banks, and consumer groups will be essential to ensure a smooth and inclusive transition to a more secure digital financial ecosystem. The key takeaway is that security and accessibility aren’t mutually exclusive; they must be pursued in tandem.
