Mexico’s Fintech Boom Faces Regulatory Needs, Says CNBV

Fintech companies are playing a pivotal role in reshaping Mexico’s financial sector, with regulations needing to adapt to ensure customer protection and expand inclusion for the more than half of Mexican adults still excluded from financial services, according to Jesús de la Fuente, President, National Banking and Securities Commission (CNBV).

De la Fuente emphasized the rapid growth of fintech companies in Mexico, noting that since January 2020, the CNBV has authorized 84 financial technology institutions, primarily focused on electronic payments and collective financing. These firms have been instrumental in bridging financial gaps.

“Without a doubt, these institutions have broken down barriers that once seemed insurmountable. They are reinventing user experiences and building bridges between sectors, markets, and historically underserved communities,” he said. While the CNBV has authorized 84 fintech firms since 2020, it has also revoked licenses for some, including Auxi and Accendo.

“As fintech adoption grows, so does the need for a strong regulatory framework to maintain trust and stability,” De la Fuente added. “We are entering a new phase of regulation, aligning ourselves with international standards and best practices. Since last year, we have actively supervised fintech companies, ensuring compliance with minimum capital requirements and operational guidelines,” he explained.

He underscored the need to strike a balance between regulation and innovation: “We must seek an equilibrium between regulation and experimentation, between oversight and freedom.”

According to the latest National Financial Inclusion Survey (ENIF), over 56% of Mexican adults now have access to at least one financial product. While this marks progress, a significant portion of the population—especially in rural and marginalized areas—still lacks access to essential financial services, said Óscar Rosado Jiménez, President, CONDUSEF.

Despite advancements, several barriers to financial inclusion persist:

• Lack of Financial Education: Limited understanding of financial products fosters skepticism and restricts adoption.

• Limited Digital Infrastructure: Many rural areas lack reliable internet connectivity, hampering access to digital financial services.

• Trust Issues: A preference for cash persists due to distrust in financial institutions and concerns about cybersecurity.

• Regulatory and Bureaucratic Challenges: Complex procedures discourage individuals from opening accounts or accessing credit.

In response, Openbank, backed by Grupo Santander, has launched operations in Mexico to offer fully digital financial services. Matías Nuñez Castro, CEO, Openbank, said, “We want to offer flexible and accessible solutions for the Mexican population, eliminating traditional banking barriers.”

The adoption of digital payments is also a priority for fintech firms. Juan José Galnares, President, Clip, stressed the need to accelerate the transition to electronic payments, particularly for small and medium-sized businesses. “Our goal is to democratize digital payments and ensure that any business, no matter how small, can accept payments seamlessly,” he said.

Mexico’s Ministry of Economy recognizes the importance of regulation in fostering financial inclusion. “We are working on more flexible regulatory frameworks to encourage greater innovation in the fintech sector,” said Vidal Llerenas, Undersecretary of Industry and Commerce. “We need to ensure that all financial solutions can communicate with each other to provide a smoother and more accessible experience for users.”

"We are celebrating a decade of tremendous growth in the fintech sector, the impressive maturity of fintech companies, and the expansion of our association. It is important to take a moment to recognize these achievements," said Sebastián de Lara General Director, FinTech Mexico. "We are celebrating the sector through the FinTech Mexico Festival with conferences, discussions, debates, and of course, great food and networking opportunities."