Mexico: Regulator shares concerns on country’s new ‘Fintech Law’

The regulator considers that “some elements included in the initiative could inhibit the potential (of the fintech sector), in terms of the intensity of competition,” according to a statement sent by the regulatory body.

“In the environment of constant innovation that the financial sector is currently living through, companies must have an adequate legal framework to develop, adopt and use technologies, infrastructure and business models that allow them to compete in the market. The initiative is restrictive in the use of these elements, ” the statement continues.

The law would give too much discretion to regulators in granting the necessary authorizations, in addition to not guaranteeing access to non-discriminatory conditions for inputs such as information on clients’ transaction data.

The agency also considers it necessary to include in the law a provision that obliges credit institutions to grant fintech their banking services, as well as sanctions if the banks do not provide such services under non-discriminatory conditions.

“The law does not create the necessary mechanisms to guarantee that banks will open these accounts or keep them open,” Josue San Martin, director of FinTech Mexico, said in a recent interview.

Full Content: El Financiero

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