The FinTech Law is signed, this will be the catalyst for Mexico!

Today, March 8, 2018, within the framework of the Banking Convention organized by the Association of Banks of Mexico, the President of the United States of Mexico, Enrique Peña Nieto, signed the decree of the Law to regulate the Institutions of Financial Technology, the so-called FinTech Law. With the above, its publication in the Official Gazette of the Federation is pending.

The publication of the FinTech Law will be the culmination of 3 years of intense work and collaboration between authorities and key elements of the FinTech ecosystem, such as the Association of CrowdFunding Platforms (AFICO) and the Fintech Association of Mexico, A.C. (Fintech Mexico) who made an important effort to make the above possible.

“We are very happy and already working with the authority for the rules of operation,” said Miguel Ángel Mejía, General Director of AFICO.

In the opinion of Fintech Mexico, it is a law that will allow progress, with the use of technology, to reduce the backwardness that Mexico has in terms of financial inclusion while generating more competition in the financial sector for the benefit of consumers.

“It’s good that there is already a set of basic rules. Now it’s time to concentrate on joining efforts so that the secondary regulation comes out in the same spirit as the Law. Also, now we must take care more than ever that all players play well, because we will have a strong spotlight for a while”, said María Morfín General Manager of AFICO.

“In Legal Paradox, we are convinced that thanks to the economic fundamentals and legal framework, in Mexico we are ready to compete with the world leaders in FinTech. As of today, we are already number one in Latin America”, said Carlos Valderrama, Managing Partner of Legal Paradox, S.C., the first firm in Mexico specialized in FinTech, BlockChain and CrowdFunding.

What led us to conclude the above?

• Goldman Sachs estimated that $ 4.7 trillion of profits generated by traditional financial services were at risk of being displaced to FinTechs.

• Statista states that the transaction value of the FinTech Mexican market is US $ 36,439 million.

• The Ministry of Finance said that FinTechs have placed $1,000 million pesos in loans with only 540 thousand users. In total we have a population of 123.5 million Mexicans.

• The National Institute of Statistics and Geography, indicated that cell phone users in Mexico represent 73.6% of the population of six years or more, and three of every four users have a Smartphone.

• Bancomer, reported that Mexico City is in the top 5 worldwide in relation to FinTech regulation.

• Mexico is in the select group of nine countries that has a regulatory SandBox, the others are United Arab Emirates, England, Singapore, Holland, Malaysia, Australia, Canada and Hong Kong.

• Mexico is the first country in America to adopt standardized computer applications programming interfaces, that will give way to the “Open Banking”, which according to Mckinsey benefit end users, foster innovation and competition between banks and FinTechs.

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