In recent years we have heard more and more the term fintech, but in spite of it many people still do not know exactly what it refers to and the importance they will have not only for eCommerce in the country, but to streamline and improve our procedures financial at any time.
What are fintechs
The term fintech is used to refer to companies that offer financial products and services through the use of information and communication technologies, such as mobile apps, social networks and internet sites.
Its term comes from the words in English Finance and Technology, and because they operate on the Internet they promise that their services will be less expensive and more efficient than those that traditional banking has offered up to now. In Mexico so far, around 158 fintech operate.
The difference between fintech and traditional financial services
As you can now deduce, the main difference between fintech and traditional financial services is the use and application of technology. With fintech it is not necessary to go to a branch to open an account, so those who want to save time, do not have all the requirements of traditional banking or live in remote places could benefit.
This factor makes fintech innovative and flexible for all types of audiences.
Who can open a digital financial services account
With more and more players from the fintech ecosystem, the options regarding services and the request to open an account in each of them are increasingly diverse. In the case of the fintech Basin of which we spoke to you recently, the only thing that you have to send is a photo of an official identification (INE, residence card or passport) and a proof of address to obtain the possibility of unlimited deposits.
Banxico initiates the provisions to regulate fintech and cryptocurrencies
One of the keys for the proper deployment and security of fintech in Mexico will be the regulation of this type of institutions by our legislation. A year ago the Congress of the Union approved the fintech law in our country, while a few weeks ago Banxico announced some provisions on this law to regulate financial technology institutions in compliance with the provisions of the legislation.
Among the “general provisions applicable to Credit Institutions and Financial Technology Institutions in the operations they perform with virtual assets” Banxico stressed that it is in their interest to allow the use of innovative technologies that generate a benefit in efficiency and functionality, for which has mentioned the requirements and conditions to operate fintech in Mexico.
Criteria and conditions of operation of Fintech in Mexico
This law establishes that these authorizations will be limited to internal operations, while the provisions of a general nature regarding novelty models will seek to establish the criteria and conditions that moral persons must comply with in order to obtain authorization from Banxico to perform compensation or settlement of payment transactions. or transfers of funds.
Challenges in Mexico
One of the biggest challenges will be building the confidence of Mexicans in the adoption of this type of new technologies, so it is important that all participants of this system comply with the regulatory framework, operating standards for protection and data protection personal as financial and friendly products are designed, with an excellent customer service that contributes to the construction of the trust of the users.