The Fintech industry in Mexico is growing at a rapid pace. In many of the cases, the banks were forced to take up the solutions and products which were provided by the Fintech industry. Many of the banks feared attempts by hackers to hack the real-time payment systems. As a result, they used the services of the Fintech industries in order to secure their networks.
Passed a bill to promote the Fintech industry
In March 2018, the lower house in Mexico passed a bill to promote the Fintech industry and at the same point in time regulated it. The aim was to reduce the probability of any kind of money laundering with the help of solutions provided by the Fintech industry. It is been turned into a law. Similarly, crowdfunding, as well as cryptocurrency regulations, are also a part of the bill. As a result, it will be easier for the Fintech industry to provide better solutions under the legal framework. As a result, the banks will be able to use the solutions more easily.
Fintech start-ups are able to compete with the banks
Also, this bill makes it easier for the Fintech start-ups as well as the small companies to use the information provided by the banks in order to significantly expand their footprint. Moreover, it will also mean that the Fintech start-ups are able to compete with the banks as well as the software companies which are providing similar solutions. This will automatically help them in gaining newer and newer clients as well. In many of the cases, the customers are not satisfied by the solutions which are provided by the banking industry. With the help of newer offerings and offerings which are particularly targeted towards consumers, it will be easier for the banks to satisfy the customers which will result in increased business for most of the banks.
30% of the banking and finance industry can be taken over by the Fintech
Finnovista which is an accelerator for Fintech startups recently commented that at least 30% of the banking and finance industry can be taken over by the Fintech start-ups quite easily. This is because they provide newer and innovative solutions for payments as well as traditional banking services. Currently, more than 158 Fintech companies are present in Mexico. That is why the future for most of the Fintech companies looks quite bright. With innovative solutions being developed by them, it will be easier for them to capture the market and expand their footprint.
One thing is for sure, the next chapter in the banking and finance industry will be written by the Fintech companies rather than the traditional banking companies.