Truthful regulation for brand new gamers
Nu considers that “regulation is crucial to make sure a good and secure monetary surroundings” and that the so-called Fintech 2.0 Regulation and the monetary system typically should adapt to the fixed improvements within the sector.
That is in step with the latest advice made by the Inter-American Improvement Financial institution (IDB) on the mixing of third-party brokers and new gamers that contribute to the expansion of safety, consumer expertise and customer support.
As well as, the regulator is at present investigating monopolistic practices by clearing homes in card funds, which drives up commissions and limits consumption.
“Nearly 6 years after the Fintech Regulation got here into power, the sector has realized lots and has grown considerably. It will be useful to evaluate and replace this regulation in a collaborative method with regulators, fintechs and different actors within the monetary ecosystem. We consider that past the Fintech Regulation, Mexican regulation should adapt to the fixed improvements within the sector, permitting the entry of extra corporations underneath totally different figures, selling innovation and its growth in a regulated method, tailored to its measurement and the altering wants of Mexicans,” mentioned Romina Benvenuti, Chief Authorized Officer of Nu México, in an interview.
Just lately, the Mexican Fintech Affiliation revealed that they’re already working with the sector on the preparation of a invoice that meets these necessities. And the Ministry of Finance and Public Credit score, in addition to the CNBV, are working collectively.
For Ramiro Nández, business director of Mercado Pago, there are gamers which have developed and grown past the dimensions for which the Fintech Regulation was designed.
He warns that though Mexico was a pioneer on this regulation, there are “different international locations within the area that maybe began slightly later or on the identical time and overtook us and are slightly extra superior, I believe a really clear instance of that’s Brazil, the place we have been promoters of open finance”.
For the supervisor, an open finance system permits the consumption of customers’ monetary knowledge safely and with a purpose to develop extra and higher merchandise for them. Properly, it might speed up banking and inclusion.
Concerning corporations like Nu or Mercado Pago itself, which have grown a lot that they’ve needed to apply for a banking license in Mexico, Nández believes that there isn’t a chance, for now, that, as a consequence of their measurement, they may be capable to interact in monopolistic practices sooner or later.
He argues that fintechs at present have 10% of the market and that, moreover, as fintechs, they’re serving to to make the pie larger, to not nook it. Particularly in a inhabitants the place virtually 50% of the inhabitants continues to be not absolutely included within the monetary system.
Stori sees a future with empowered customers
Salomón Woldenberg, Director of Public Coverage and Authorities at Stori, mentions that fintech regulation in Mexico has had a constructive affect on the expansion of the sector. Nevertheless, he factors out that Mexico’s Fintech Regulation, though the primary in Latin America, is already the oldest within the area. He suggests that there’s a possibility to evaluate and replace the regulation to proceed to make the most of expertise, appeal to overseas direct funding and lift capital for monetary funding.
Woldenberg additionally highlights the significance of transversal regulation as a result of rising integration between banks and fintechs, in addition to the necessity for customers to personal their monetary knowledge to higher evaluate programs. Moreover, he mentions that it’s important to work intently with regulators to supply certainty to customers and be sure that adjustments in regulation are useful and properly thought out.