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Some of the largest Growth in Latin American Fintech comes from Mexico

Wednesday, 7th of November 2018

The exciting staggering growth in Latin America’s fintech industry, from 703 to 1166 in the past year reveals the continent’s interest in seeking out alternatives to traditional banking methods. Following decades of political corruption and conflict across a number of LatAm nations, it appears that according to the Inter-American Bank of Development (BID) study “Fintech in Latin America: Growth and Consolidation,” people are finally on the hunt for alternatives.

The boom in fintech demand, in a region where hust five years ago fintech was a relatively unknown is the result of rapid advances in technology combined with increased mobile and internet use across the region. What’s more, it seems that the fintech revolution is showing no signs of slowing down.

Mexico is one of the pioneers in this sector in the region, as it is the first country to create a law specially designed to help regulate its booming fintech businesses. The Ley Fintech (Fintech Law) was voted in earlier this year with 264 votes in favour to 61 against, with one abstention, and establishes regulations on the execution of financing and investment through either fintech or traditional banking institutions. Although some feel that it is early to introduce a law so early the lifespan of fintech, Lawyer Juan Luis Hernández Conde told CNN that it was an important step.

“These sanctions force institutions to protect their clients and the money that the users entrust in them,” he explained. “This law’s sanctions are strong because the authorities are taking the practical measures very seriously in order to protect the clients’ interests.”

On September 10, more regulations were added to the law, such as specific articles relating to security for fintech companies, as well as changes to Article 58 to strengthen the anti-money laundering provisions. Mexico is the leader in creating a regulatory framework for online financial groups, and as the fintech wave spreads across the country, it is expected that other countries will follow suit.

Source: Aztek Reports; https://aztecreports.com/mexico-fintech/1925/ (13/11/18)

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