Financial Innovation in Mexico, Its Legality and the Transition in the Decade of Digitalization (International Journal of Human Sciences Research)

Summary

• Since 2018, the number of fintechs in Latin America has grown by 112%, and almost a quarter of all fintechs operating worldwide were founded in the region, according to the Inter-American Development Bank.p.11
• Mexico and Brazil each have more than 400 fintech companies.p.9
• The Law to Regulate Financial Technology Institutions (Fintech Law) was published on 9 March 2018.p.9
• The 2014 Financial Reform in Mexico was a set of legislative changes aimed at promoting financial inclusion and SME access to financing.p.9
• According to Monei, 25% of customers want a 100% digital experience with their bank.p.3
• Nubank offers banking and crypto services to 70 million customers in Brazil, Mexico and Colombia.p.12
• Bitso lets users buy and sell 45 cryptocurrencies and supports money transfers between more than 80 countries.p.11

Key insights

1. Latin America's fintech count has grown by 112% since 2018, making the region an innovation hub.p.11
2. Mexico and Brazil each host more than 400 fintechs.p.9
3. The Fintech Law, published on 9 March 2018, gave institutions of financial technology a specific legal framework.p.9
4. The law is credited with fostering competition, financial inclusion, user protection and startup growth.p.10
5. Fintechs lower costs for users because most charge lower commissions than traditional banks.p.8
6. Open banking is cited as a collaboration model between fintechs and traditional financial institutions.p.8
7. A lack of regulation and the absence of physical branches are listed among the disadvantages of fintechs.p.9