Technology companies focused on offering financial services occupy more and more space within the financial system in Mexico, not only because of the Law to Regulate Financial Technology Institutions, or Fintech Law, but also because of the adoption of traditional figures, according to a Addem Capital analysis.
According to the private fund specialized in debt, along with the dynamism that the process of authorizing companies to operate under the Fintech Law has had, there has been a deepening of innovation within the system.
“In recent years, we have seen a boom in the number of fintech in the region, and the main companies have begun to adopt regulation under traditional legal figures,” details the analysis by Addem Capital.
Within the analysis carried out by this firm, the number of technological entities that have entered the financial ecosystem stands out. For example, within the Fintech Law, Addem Capital highlights the 14 electronic payment fund institutions (IFPE) that have so far been authorized, as well as the 10 collective funding institutions that have received the endorsement of the National Banking Commission and of Securities to operate under this regulatory framework.
“Along with the new fintech Law, the number of regulated and supervised companies is growing exponentially, increasing trust in the ecosystem and deepening innovation in the financial sector,” the analysis indicates.
As of March 2018, when the Fintech Law was promulgated, the sector’s regularization process began and, to date, 14 IFPEs have obtained their authorization, as well as 10 collective funding institutions.
Addem Capital’s analysis highlights the incursion of technology companies into traditional figures such as multi-purpose financial companies (sofomes), popular finance companies (sofipos), investment advisers and even banks.
According to this firm’s count, 29 technology companies have entered the sofomes sector, five that act as sofipos, four promoted by the banking sector, two insurance companies and three as exchange houses, among others.
In recent months, the acquisitions made by technology companies of traditional financial entities, such as that of Credijusto from the Finterra bank, the purchase of the Akala software by Nu México and that of Ualá from the ABC Capital bank have stood out.
Reference-www.eleconomista.com.mx