Fair regulation for new players
Nu seeks to ensure that the so-called Fintech 2.0 Law adapts to the constant innovations in the sector to allow the fair and regulated inclusion of new companies.
This coincides with the recommendation recently made by the Inter-American Development Bank (IDB) on the integration of third-party commission agents and new actors that contribute to the growth of security, user experience and customer service.
Furthermore, there is currently a regulator investigation on monopolistic practices of clearing houses in card payments, which increases commissions and limits consumption.
“Almost 6 years after the entry into force of the Fintech Law, the sector has learned a lot and has grown significantly. It would be beneficial to review and update this law collaboratively with regulators, fintechs and other actors in the financial ecosystem. We consider that beyond of the Fintech Law, Mexican regulation must adapt to the constant innovations in the sector, allowing the entry of more companies under different figures, promoting innovation and its development in a regulated manner, adapted to its size and the changing needs of Mexicans” Romina Benvenuti, Chief Legal Officer of Nu México, said in an interview.
Recently, the Fintech Mexico Association revealed that they are already working with the union to prepare a bill that meets these requirements. And the Ministry of Finance and Public Credit, as well as the CNBV work together.
For Ramiro Nández, commercial director of Mercado Pago, there are players that have evolved and grown beyond the size for which the Fintech Law was designed.
He warns that although Mexico was a pioneer in this regulation, there are “other countries in the region that perhaps started a little later or at the same time and overtook us and are a little more advanced, I think a very clear example of that is Brazil, where we were promoters of open finance”.
For the manager, an open finance system allows the consumption of users’ financial data safely and in order to develop more and better products for them. Well, it would accelerate banking and inclusion.
Regarding whether companies like Nu or Mercado Pago itself, which have grown so much that they have found it necessary to apply for a banking license in Mexico, Nández believes that there is, for now, no possibility that, due to their size, they will be able to engage in monopolistic practices in the future.
He argues that fintechs currently have 10% of the market and that, furthermore, as fintechs, they are helping to make the pie bigger, not monopolize it. Especially in a population where almost 50% of the population is still not fully included in the financial system.
Stori sees a future with empowered users
Salomón Woldenberg, Director of Public Policy and Government at Stori, mentions that fintech regulation in Mexico has had a positive impact on the growth of the sector. However, he points out that Mexico’s Fintech Law, although the first in Latin America, is already the oldest in the region. He suggests that there is an opportunity to review and update the law to continue taking advantage of technology, attract foreign direct investment and raise capital for financial investment.
Woldenberg also highlights the importance of transversal regulation due to the growing integration between banks and fintechs, as well as the need for users to own their financial data to better compare systems. Furthermore, he mentions that it is essential to work closely with regulators to provide certainty to users and ensure that changes in regulation are beneficial and well thought out.
