Improving the payments system, banking infrastructure, and implementing anti-fraud strategies are some of the main challenges that Fintech companies face in Mexico. The organizations seek to move towards an open banking system which favors financial inclusion.
“A successful implementation would require for us to reduce friction in online payment systems, upgrade the banking infrastructure, combat fraud, adopt technical standards, and commit with a broad range of interested parties, among other measures, in order to ensure sustainability,” the document explains.
The late adoption of a law which seeks to regulate Fintech companies in Mexico (also called “Fintech Law”), combined with a rapid worldwide growth in open banking services, creates perfect conditions for the development of Mexico’s financial sector.
“Mexican consumers will benefit from a broader range of options in regard to financial services, and those that are financially excluded will benefit from better solutions, allowing them to access the full extent of benefits offered by financial institutions.”
Regulatory Institutions in the country are to present secondary legislation for the Fintech Law in three months. The secondary legislation will be applied for crowd-funding enterprises and electronic purses, providing operation standards for the use of cryptocurrencies in the country.
This will be applied in the context of the open bank global trend, which allows for third parties to connect to banking systems for the development of new financial products and a broader knowledge of the client base.
“Banks will have an opportunity to expand their services and reach new markets. Fintech enterprises and banks will be able to collaborate smoothly for their mutual development, whereas investors will benefit from better options to place their money,” the text explains.
At this time, the development, implementation, and adoption of an open bank strategy in the Mexican market is not without challenges, facing the upcoming presidential election and a change of administration starting December.
“In order to capitalize this opportunity, a processable roadmap must be followed to ensure that, by November 2018, the country will have developed an open bank, in time for the administration change. This is the best time for Mexico to revolutionize its financial service ecosystem.”
Mexico will have a unique opportunity to approach the pioneers of the global open bank and lead the way in the optimization of financial inclusion.