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Tech giants evaluate entering the financial system

The technological giants such as Facebook, Amazon, Google and Apple have touched the door of the National Banking and Securities Commission (CNBV) to enter the financial system.

How are things going?

The president of the organization, Adalberto Palma, acknowledged that he has met with representatives of these firms, which are interested in entering the payment system: “I have joined with everyone, particularly with institutions that are looking at the payment system”.

The official recalled that the Fintech Law in Mexico opens the possibility of the operation of this type of companies in the financial system, with which the authority seeks to have the appropriate regulation according to the technological change.

“This fintech theme has opened a very interesting expectation. The speed with which these things are happening makes me very interested, because what I do not want is that we fall behind in regulation”, he explained.

“I have been insisting internally that the issue of regulatory innovation is our responsibility. We will have to be very careful not to be the brake, but neither be irresponsible doing things without understanding them”, he added.

A challenge for so many…

The arrival in the financial system of technological giants represents one of the main challenges for banks and other institutions around the world.

According to the Fintech report and the structure of the financial services market, the Financial Stability Board (FSB), published in February, highlights that these firms can provide financial services as part of their product range. .

The bigtech firms, as these companies are known, can associate with the holders of financial services and act as distributors.

“Bigtech companies can have immediate access to state-of-the-art technologies to process big data, including cloud computing, artificial intelligence and machine learning.

“Therefore, they can enjoy some competitive advantages over financial services companies”, the report explains.

The role of Fintechs

The FES document emphasizes that Fintechs can provide a complementary service to those provided by existing financial institutions, which can facilitate greater competition by increasing transparency or facilitating the change of suppliers.

The official said that, in general terms, so far in the current administration have been several intentions to open new banks in Mexico, both foreign and domestic firms:

“Yes we have registered several intentions. In a couple of months we hope that some of the people who have approached will start their participation”, he said.

At the same time, he explained that in the fintech sector there are several companies that seek to become Popular Financial Societies (Sofipos) and banks with which they are currently in the process of analysis and discussion at the CNBV.

They will postpone low rates

Given the decision of the Bank of Mexico, last Thursday, to maintain its benchmark rate unchanged at 8.25%, it is more distant that the central bank begins a downward trend in its monetary policy, said the director of Economic Studies of CitiBanamex, Alberto Gómez.

“Up rates I do not see it in the near future. What may happen is that the prospect of a rate reduction begins to differ more in time. It was a statement not so propitious to see relaxation soon and that will be one of the considerations taken by the members of the market”, said the manager.

What about expectations?

The specialist explained that there is a good expectation about the decisions taken by the federal government to face the financial situation of Pemex.

“The Ministry of Finance is taking the earring with great responsibility, let’s wait for the details, but we hope it’s good news”, he added.

CitiBanamex delivered yesterday the Tenth Financial Education Award, in which he recognized young people who promote the economic and financial culture in the country.

This year the design of a board game and an illustrated story was awarded, with a prize of 134 thousand pesos, in addition to the incorporation of the winning products to the educational offer of Financial Education CitiBanamex.


Also published on Medium.

Published inFintech
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