The Mexican Fintech Law was issued in March 2018. Of the 85 fintechs, 60 applied to operate as electronic payment processors and 25 as collective financing companies, the CNBV said in a statement, according to Reuters. The CNBV said fintechs that have not yet sought authorisation were no longer allowed to operate in the country and would face sanctions if they did.
In Mexico an estimated 44% of the adult population own no financial products. Steep banking fees and past scandals put many off. Others shun the formal banking system to stay off the radar of tax collectors, or they are too poor to save.
Efforts to increase financial inclusion have been led by the Mexican Finance Minister, who told Reuters in an interview earlier in 2019 that the government planned to transition to direct deposit or digital wallets to dispense welfare benefits.
The minister also expressed confidence that fintechs would finally bring much needed competition to the money transfer business, reducing the cost of remittances sent home by Mexicans abroad and therefore benefiting the poor that rely on these transfers.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now