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Mexico wants a Fintech Institution

The Law to Regulate Financial Technology Institutions, better known as the Fintech Law, could inhibit the appetite in the ecosystem in response to the requirements it demands.

Salvador Moreno Segura, CEO of AXA Investment Managers, said that this law, which was announced in March of last year, seemed to punish these platforms through the various requirements it imposes.

In the conference “disruptive technologies in the financial system”, carried out by the Institute of Business Development Anáhuac, said that it is important to regulate the fintech, but the law could get to inhibit the appetite to enter the business.

“Obviously regulation is necessary, but fintech will be very punished. They will have to understand you very well (to the law) or hire a compliance officer or approach the banks to help them in this regulatory environment I do believe that the appetite is going to be inhibited at first, because there uncertainty of the rules, “he said.

A few days ago, the M2Crowd platform, focused on collective funding, formally requested authorization from the National Banking and Securities Commission to operate as a financial technology institution in Mexico, in accordance with the provisions of the secondary laws of the Fintech Law.

Moreno Segura said that, at present, fintech have focused on individuals and SMEs as customers, since they are a market where they can easily enter the attractiveness offered by these platforms.

“They enter with individuals and SMEs because they are a sector that has less liquidity and only one person or few must be convinced, not as in larger companies, where you have to go through more filters and have a lot of liquidity,” he said.

He also explained that most of the fintech has focused on offering the payment system and the loans, because they are very profitable segments and represent around 60% of the profits of the banks.

He added that, as is known, with Fintech, the process of requesting a loan is faster and more attractive than with banks, so that, if good industrialization continues, banks could begin to decrease.

How is it made in Mexico?

According to the Finnoch Radar Mexico of Finnovista, the country has taken great steps to advance in the development of fintech innovation and to position itself as a reference worldwide.

Currently, the Mexican fintech ecosystem is composed of 334 startups, which makes it the second country with the largest ecosystem in the region, behind Brazil with 377 startups.

“In this way, Mexico strengthens its position as the second largest fintech ecosystem in Latin America and one of the main engines of financial innovation in the region. The Mexican ecosystem is 2.5 times greater than Colombia, the third fintech ecosystem in the region with 124 startups, more than three times larger than Argentina and four times greater than Chile’s, “he said.

Of the fintech ecosystem in Mexico, 23% corresponds to startups related to payments and remittances, followed by 22% of platforms related to loans; business finance management, which represents 13%; personal finance management, with 11%; crowdfunding, with 9% of the ecosystem, while business technologies for financial institutions account for 7% of the total.


Also published on Medium.

Published inE-commerceFintechTechnology

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