October 11, 2021Mexico
Mexico Fintech ecosystem and regulation
Fintech in Mexico has grown exponentially in the last years, which has led it to position itself as the second country with the highest number of Fintech, only behind Brazil. One of the main Fintech sectors in Mexico is the one of lending with 25 percent of all the industry, along with the payment sector. Enterprise Technologies for Financial Institutions (ETFI) and Insurance segments are also positioning themselves in a good place with a significant increase in new businesses
Regulation in Fintech
Mexico is one of the few countries that has a Fintech law in Latin America that establishes regulations to enter into operation and is supervised. Crowdfunding institutions, electronic money and payment institutions are required to request an authorization from the CNBV to provide their services in Mexico. Subsequently, the CNBV and the Interinstitutional Committee will have a period of six months to grant or deny the presentation of the authorization. This period can be extended for another three months depending on the information requirements of the financial authority. However, the first license was granted only in 2020.
Also, since Fintech are considered financial entities rather than technology companies, they face the same regulations as do banks or brokerage firms, including capital requirements.
Top Lending Fintech in Mexico
Konfio: This Fintech provides business management software systems and business credit solutions to growing enterprises. Its customers can get immediate liquidity with a personalized business credit card offering a flexible credit limit. Businesses using Konfio Pay may create payment orders and offer a Konfio credit line to their buyers as well. Konfio has over 40,000 companies and has become one of the 250 Top Fintechs in the world.
Credijusto: This lending Fintech is designed to offer easy, reliable, and transparent credit for SMEs. This year, Credijusto made history by acquiring Banco Finterra for around $50 million, and as of now, the acquisition has doubled the size of Credijusto’s business. It became the first Fintech company to buy a regulated bank in Mexico.
Non-Banking Financial Companies
Among the Non-Banking Financial Companies in Mexico we can find the Multiple Purpose Financial Companies (Sofomes), which are entities that grant credits or financing in a simpler and more direct way compared to a banking entity. The lack of access to fast, timely and adaptable loans to the needs of the company are the main reasons why Multiple Purpose Financial Companies were created. Some of the most important Sofomes are:
1. Fimubac: They are a Non-Regulated Multiple Purpose Financial Company, established since May 2008, whose main purpose is the regular and professional performance of credit granting, financial leasing and financial factoring.
2.Impulsora Emergente: Established since 2008 and operates as a Financial Intermediary with the vision of making personal and business projects a reality; offering innovative products that meet the needs of our society.
