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Fintech Law: Is it positive and necessary?

Banco Santander México has described the Fintech Law as necessary and positive, to the extent that it provides certainty to both users and investors.

Who is fitting in the regulation?

Javier Castrillo, Deputy General Director of Transformation and Digital Banking at Santander México, commented that, according to the results of the study called “Thermometer fintech: the challenges of regulation”, carried out by the aforementioned bank, Endeavor and the British Embassy in Mexico , there are 515 fintech registered in the country, of which around 200 fit into the fintech regulation.

According to the article, the fintech that are in the fields of electronic payments, virtual assets and crowdfunding must present their application to the National Banking and Securities Commission (CNBV) no later than September. Otherwise, they will no longer be able to continue with their operations as such.

In this scenario, the manager of Santander Mexico stressed that the law is positive and necessary, but that this will lead to a consolidation of the sector.

The consolidation of the fintech ecosystem

On the other hand, Enrico Robles, director of Intelligence of Endeavor, said that this consolidation of the fintech ecosystem will take place in three aspects. One is that there will be closure of companies, because entrepreneurs can not meet all the requirements established by the Fintech Law. Another will be the consolidation of the great players, who will ally themselves or buy the little ones. It is expected that the entrepreneurs with greater advantage are those who were already consolidated prior to the enactment of the law, and who therefore did not see their operations affected. The third aspect is that entrepreneurs who can not meet the requirements to operate under the Fintech Law change their business model to another that is not contemplated, with prior advice from consultants and investors.

Fintech growing

The Economist also published another article where he states that almost half of the fintechs in Mexico are in the growth stage. “Of the slightly more than 500 fintech that Fintech Thermometer, made by Santander Mexico and Endeavor, registered in the country, 45 percent is in the stage of growth and expansion and 35 percent are ready to climb”, said the media. According to the aforementioned document, private equity funds are more interested in injecting money into Fintech that in some way are already consolidated.

According to the data surveyed, nine percent of the fintech detected are ready for commercial launches, five percent are in beta, four percent in prototype and one percent in concept or idea.

Also published on Medium.

Published inFintech
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