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The financial world is undergoing a profound transformation, and Mexico is no exception. In recent years, the country has seen the growth of the fintech industry, especially in the business-to-business (B2B) sector: Mexico’s fintech market is more than that. 650 companies and continues to grow. This evolution has been accelerated by regulatory changes that are driving innovation and competition in the fintech landscape.
The fintech revolution in Mexico
Mexico’s tech-finance ecosystem has grown significantly and has become one of the most dynamic in Latin America. A wide variety of startups and companies offer innovative financial solutions to consumers and businesses. However, while business-to-consumer (B2C) fintech companies have received widespread attention worldwide, the B2B sector is quietly redefining the financial landscape for businesses in Mexico today.
Regulatory changes that pave the way
After recognizing the potential of financial technology to improve financial services and stimulate economic growth, the Mexican government has implemented important regulatory changes with the Bank of Mexico (Banksico). The most significant of these changes The FinTech Act of 2018. In this innovative law, Mexico was identified as the first country in Latin America to establish a regulatory framework expressly designed for fintech companies and to allow new operators to enter the market.
Key regulatory changes include an open banking system, electronic payment funds, regulatory sandboxes and digital identity verification.
The Open Banking System: A Catalyst for B2B Synergies
The introduction of an open banking system creates new opportunities for innovation in Mexico, as it redefines the way companies operate and collaborate with each other. Through the open banking system, companies in Mexico can access financial instruments and services reserved for large corporations. While Mexico’s open banking system is not yet widely adopted, we believe it will foster innovation, efficiency and profitability for companies of all sizes in the future, with companies like Jeeves starting to test Mexico’s open banking system for their customers.
Integrated Finance: Integrating solutions into routine services
Integrated finance represents a paradigm shift in the way businesses access financial services. Instead of looking for separate financial solutions, companies can now seamlessly integrate these services into their existing operations. For example, DD Loans has integrated loan services into ride-sharing and more 5 million Loans in two years. The enormous potential of integrated finance is increasingly being revealed. By developing this sector, B2B fintech companies can serve 4.1 million Regulates financial processes and improves operational efficiency of small and medium enterprises in Mexico.
Instant cash boosts business
Instant Cash is changing the rules of the game for B2B transactions in Mexico. Traditional payment methods often involve delays due to batch processing and bank timings. Instant payment systems like CoDi and the like Mobile money, also known as DiMo, removes these barriers and allows businesses to transact in real time. This is especially important for industries where time-sensitive transactions are the norm, such as supply chain management and manufacturing. With payment systems like DiMo, companies can send payments with a phone number, greatly streamlining the B2B payment process that traditionally required Clabes (bank numbers).
The future of B2B fintech in Mexico
According to Arturo Herrera Gutierrez, Mexico’s former finance minister, „Fintech is not only about financial inclusion, but about creating a new financial environment that can boost Mexico’s economic future.”
With a favorable regulatory environment, growing demand for innovative financial solutions and a dynamic startup ecosystem, disruption is likely to continue. Promising to create a transformative era for business financial ecosystems and make a significant contribution to the country’s economic trajectory, B2B fintech will play a key role in shaping the future of Mexico’s finances.