The new regulatory framework of the Mexican fintech industry is generating noise. Other Latin American countries follow its implementation closely, looking for clues for their development at home, while local enterprises are quick to comply with the regulations that will come into force in the coming days.
And for potential partners, such as those in the financial ecosystem of the United Kingdom, the new law represents a point in favor of internationalization, both of its companies and of Mexico.
“Mexico has always been an open economy, and that is very good”, said Rory O’Kane, a Fintech trade and investment specialist at the United Kingdom Department of International Trade, in an interview with Ipana.
Through its embassy in Mexico, the country prepared delegations of officers and startups to begin an approach process with local industry, which includes participating in Fintech Week and Finnosummit, two regional events held in Mexico City to learn about new trends and proposals of the sector, and connect possible synergies and capitals.
“It is a benefit for the Mexican fintech industry to mature through laws and conditions that are similar to those in the United Kingdom. It’s always harder for companies that want to expand internationally if there are legal barriers”, added O’Kane, at the main headquarters in Mexico City of the HSBC global bank, with whom they allied to make a first exchange event between startups on 9 of September.
The embassy also partnered with Banco Santander to evaluate pitches and reward businesses that will be presenting their business models in Finnosummit during the week.
Everything indicates that the attraction generated by the effervescence of the Mexican market and its opportunities will continue to increase, and this is only natural, considering that only half of the country’s adult population is related to any financial institution, and the nation is urgent to think about effective ways to formalize your economy and reduce your dependence on cash.
All this translates into unexplored territory for new ventures, local and foreign.
“Fintech is going to eat in Latin America”, said Pritam Basul of Boseman, a British startup specializing in developing money management platforms for other technology companies. The venture was part of the visiting delegation. Basul highlighted a 66% growth in the number of fintech companies that Mexico has recently suffered.
“For us it is very important to have a broader vision of the ecosystem,” said Juan Carlos Espinosa, director of digital strategy and innovation at HSBC. “Being fair, many Fintech companies in Mexico are focused on Mexico – not even in Latin America – because they are in the early stages of development. (That’s why) we are trying to connect with fintech brought by the United Kingdom, while promoting all the opportunities we have in the local market”, he added.
Focus on corporate finance
O’Kane and Espinosa agreed to specify that the next axis of development of both local and British industry will be located in the small and medium-sized enterprises (SMEs) sector, and with solutions that help them save time and reduce costs
This is aligned with the proposals of some companies that are in search of partners in Latin America. Citi has said that there is a need for enterprises focused on solutions for companies and financial institutions. Mambu, a company that offers a banking core, is also in search of technological solutions for other companies.
“Mambu is investing in plug-in solutions, solutions that make connections, which can be payment systems, regulatory reports and KYC processes,” Edgardo Torres, head of Mambu for Latin America, said for iupana. “We are making large investments at the moment and we are looking for partners in this spectrum”.
In Mexico, specifically, the market continues to need more and better payment solutions, based on different technologies, including QR code, in addition to initiatives in cryptocurrencies, collective funding and technologies that help in the identification of customers and prevention of digital fraud.
“In crowdfunding, wallet, payments: there will be an evolution”, said Espinosa.
Also published on Medium.