Fintech Revolution: Open Finance and Inclusion in Mexico

I remember when I first arrived in Mexico, a bit more than  nine years ago, when the narrative around banking felt stubbornly fixed: long queues, impenetrable paperwork, and a system for a select few. For millions, the formal financial world was a distant, exclusive club with doors firmly shut. Access to something as basic as a credit card or a fair loan was a privilege, not a right. For decades, that was simply the status quo. 

Today, that story is being rewritten. A wave of technological innovation has redefined the market’s purpose, turning inclusion and competitiveness into its greatest opportunities. I’ve been privileged to witness it firsthand, and it shows Mexico’s potential to leapfrog legacy systems and build a more equitable financial future. 

The spark was simple: technology meeting a deep, unmet need. In a country where, according to INEGI, over 80 million people use a smartphone, the infrastructure for change was already in our pockets. The question was who would build the bridges from this digital reality to real financial needs. The answer came from a burgeoning ecosystem of startups — now over 800, per the 2025 Finnovista Fintech Radar — that saw what incumbents overlooked: a massive, underserved market hungry for access, transparency, and products fitting its needs. 

Engine of Inclusion: Reaching the Unseen Majority 

Fintech’s most profound impact has been bringing millions out of the financial shadows. The COFECE data from 2023 noted only 3 out of 5 Mexicans had access to credit. This wasn’t just a market gap, it was a brake on progress. 

Fintechs tackled this by challenging “creditworthiness.” Traditional models created a catch: no credit without history, no history without credit, excluding the very people who stood to gain most. Here, data changed everything. By leveraging alternative sources, fintechs built more inclusive risk models. A small merchant’s steady sales or an individual’s responsible phone plan management could become a passport to the formal economy. Mexico’s cash-based economy remains a challenge. With the Bank of Mexico noting cash is used in up to 95% of transactions under MX$500 (US$27), the path to full digitalization is a marathon. Still, fintechs are making inroads with user-friendly wallets and payment platforms that show tangible benefits — security and convenience — shifting habits one transaction at a time. 

Forcing a Systemwide Upgrade 

The arrival of fintech was not just a gift to the unbanked; it was a wake-up call for the entire financial sector. The surge of new players created a level of competition that Mexico's highly concentrated banking industry had not experienced in decades. This new dynamic forced a systemwide upgrade, with the ultimate winner being the Mexican consumer.

We saw this clearly in the credit card market, where agile fintech players now account for a significant share of new cards issued, offering streamlined digital applications that take minutes, not weeks. But perhaps the most telling example is in the savings sector. For years, traditional savings accounts offered yields that were negligible, often erased by inflation. Then came the digital SOFIPOs (Sociedades Financieras Populares), which, thanks to their lower overhead costs, began offering savings rates of up to 15% — a figure unheard of in traditional banking. This didn't just provide a better return for savers, it forced the entire market to become more competitive. 

This newfound dynamism has not gone unnoticed globally. The Mexican fintech ecosystem is now the second largest in Latin America, trailing only Brazil, and it's attracting significant investment. The fact that nearly 50% of Mexican fintechs have internationalized, expanding into markets like the United States and Colombia, is a testament to the sophistication and scalability of the solutions being built here. Among these innovators, Belvo has stood out as one of the leading providers powering the financial ecosystem, enabling data connectivity and open finance infrastructure that serve as the backbone for many fintech and banking solutions in the region. 

This outward growth is fostered by a collaborative spirit, often championed by organizations like the Fintech Mexico Association, which have been instrumental in building a cohesive and forward-thinking industry. Belvo’s active participation and leadership within the Association have further strengthened these efforts, contributing to the development of a robust and inclusive ecosystem that continues to set benchmarks for innovation and collaboration. 

The challenge now is to ensure the regulatory framework evolves at the same pace as the technology. The full implementation of the Fintech Law, particularly the secondary rules for open finance, remains a critical next step. Creating a standardized, secure framework for data sharing will unlock another wave of innovation, empowering consumers with true ownership of their financial information and fostering even greater competition. 

The road ahead is not without its obstacles. Bridging the digital divide, enhancing financial literacy, and navigating a complex regulatory environment are ongoing tasks. But the trajectory is clear. The quiet revolution I spoke of is now a resounding force for change. Fintechs have given millions of Mexicans the tools to build better financial lives and, in doing so, has made the entire economy more resilient, innovative, and competitive. The old, fixed narrative is gone for good, replaced by a dynamic story of progress—a story that is still being written, with its most exciting chapters yet to come. As this next phase unfolds, I’ll stay focused on what I can directly influence: building bridges across the ecosystem, shipping practical solutions, and keeping inclusion and competitiveness as the North Star.