The Mexican Ministry of Finance and Public Credit has released the first draft of the new Mexican Financial Technology Law that is aimed at creating a regulatory framework for financial technology platforms. It was also announced that the Mexican Ministry of Finance and Public Credit (SHCP), the National Banking and Securities Commission (CNBV) and the Mexican Central Bank (Banxico) will work together to create a new fintech regulatory Council. The National Commission for the Protection and Defence of Users of Financial Services (Condusef) will also have increasing power to protect financial consumers.
Key areas covered by the law will be financial inclusion, consumer protection, financial stability and counter money laundering.
The law will impact financial technology companies such as those involved in crowdfunding, electronic payment funds and virtual asset management. Key areas covered by the law will be financial inclusion, consumer protection, financial stability and counter money laundering. For instance, fintech companies will be obligated to link their operations with a current/deposit account from a financial institution to regulate fintech transactions, protect consumers and encourage financial inclusion among the unbanked population.
According to the Mexican Financial Inclusion Report, 2016, access to information technology in Mexico has grown 395% in the last 15 years. Moreover, RFi Group data from H2 2016 shows that 87% of Mexican banked consumers use digital channels to conduct day-to-day banking activities. Together, these stats show that the technology to provide fintech services exists in Mexico and that there is demand for digital banking services. Therefore, this regulation is likely to be important in allowing Mexican authorities to achieve their goals of modernising the financial sector and increasing financial inclusion in the country.