Helping Build a Resilient Fintech Sector

Q: What has been the evolution of YG Consultores since its foundation and what plans does the firm have for the Mexican market?

A: YG Consultores was founded by Yoliztli Gutiérrez in 2008, aiming to become one of the most pro-business legal firms in Mexico. The Mexican fintech industry has experienced seismic changes, following constant shifts in the regulatory landscape and the emergence of new technologies. To support our clients, YG Consultores relies on a diverse pool of multidisciplinary experts that generate a cumulative, added-value proposition that is difficult to come by in the market. Our specialized services concentrate on six industry fundamentals: payments, financial authorizations, anti-money laundering, financing of terrorism, regulatory compliance and corporate law. YG Consultores aims at being an active participant in the development of Mexico's fintech industry by helping clients overcome business hurdles, which are indicative of a competitive regional and global fintech industry.

Q: What elements of its services have made YG Consultores the adviser for 20 percent of fintechs in Mexico?

A: The firm is successful thanks to our team, that it is our most valuable asset. The individual business visions of myself and my partners coalesce seamlessly. The firm harnesses, the expertise of its attorneys in law, software engineers, risk experts, data analysists, compliance officers and other specialists. Their expertise is fundamental to our methodology, preparation and consultation. It is said that a lawyer that only understands law is destined to fail, we need to understand our client’s business models and how they work. We have been in constant pursuit of additional perspectives to augment our visibility of the market, a characteristic that has made us attractive to many companies that appreciate our holistic approach, which considers regulatory compliance and the understanding of technical implications and challenges.

Q: YG Consultores was the firm with the biggest expansion during 2022. What underlying market conditions or fintech business needs enabled this growth?

A: The primary driver was the COVID-19 pandemic, which forced companies and consumers alike to assimilate technologies and digital platforms. Mexico’s federal oversight authorities have finished conducting an extensive assessment of all the files presented since the Fintech Law was ratified in 2018, even despite ongoing disruptions. These two developments implied the adoption of new technologies and new compliance standards and regulations. The latter requires sound legal advice and guidance to successfully meet the government’s outlined criteria. Through our consultation and ongoing work with fintech institutions, we are aiding in the creation of a financial ecosystem that is safe and reliable for all participants.

Q: What challenges and opportunities do you anticipate will arise from the Law to Regulate Institutions of Financial Technology?

A: The law is at the definition stage and identifying all participants. As of June 2022, the 2018 Fintech Law has warranted the application of 139 fintech licenses in Mexico. Whether the regulatory framework needs to be adapted or not will surely be signaled by the sector and its participants. The private and public sectors must come together to formulate a solution that considers the balance between safety, reliability and, most importantly, augments financial inclusion for end users. Considering the rapid evolution of technology and by extension consumers, it will not be long before legislation will have to be adapted.

Q: How do you expect the CIRCULAR 1/2022, addressing the participants of the Interbank Electronic Payment System (SPEI) and others, to be impacted either directly or indirectly?

A: The CIRCULAR will be one more challenge that companies will have to learn to overcome. There are three main components to this legislation: an expansion to the SPEI, indirect participation in SPEI and miscellaneous issues that companies should approach on a case-by-case basis. The expansion of SPEI is beneficial because it outlines the extension of hours, contingency solutions and events that affect operations. For our clients, these changes outline technology and resource investments as needed to meet regulatory compliance standards. Overall, the law will benefit the sector, improve the system of payments and positively impact end users.

Indirect participation has been a subject of great controversy, discussed extensively in different forums and congresses. It would regulate services provided by important players in the sector so other companies can have indirect access. It also established different obligations for service providers and those who indirectly access SPEI. Under the new regulatory framework, indirect participants that meet certain criteria will be obligated to become direct participants. The immediate challenge is that many of them lack the resources needed to comply with such a tight deadline. Overnight, these organizations will have to pursue significant structural and procedural changes to their organizations if they are to remain operable.

Q: What objectives does YG Consultores have for 2022-2023?

A: We aim to continue contributing to the development of a dynamic and competitive national fintech sector, supporting our clients so they can continue doing business, especially amid great market uncertainty.  In each crisis there is an opportunity and we cannot give up. We must continue advancing and continue contributing our expertise to develop a more dynamic, competitive and resilient sector.

YG Consultores specializes in providing legal consulting in the field of fintech, payment methods, remittances, e-commerce and business law, with clients in Mexico, the US, South America and Asia.