Unleashing Mexico’s FinTech Potential
We are working with international actors across the financial and open data spectrum to take the first steps towards establishing a financial information standard in Mexico, pushing for greater financial inclusion and impactful innovation.
WHY THIS MATTERS
The digitalisation of the economy has affected many sectors, allowing them to grow in an unprecedented way that matches shifting market conditions and consumers’ newfound demands and behaviours. It is time for the financial sector to benefit accelerate its growth and impact through increased data accessibility!
The idea behind opening financial information is to to help people gain more control over how they transact, save, borrow, lend and invest their money. Access to more information could help the various financial sectors, from the traditional banks to the booming FinTech industry, to develop new, stronger and better financial services and methods than the traditional ones and make them more accessible to the general public. Mexico has hugely benefited from the advent of the FinTech industry, which is leading financial innovation across the globe. From 2016 to 2017, the sector grew over 50% in the country, placing it as the Latin American leader in the market.
In 2016, 66% of adults did not own a bank account in Mexico. This represents over 57 million Mexicans who are lacking access to basic financial services. The difficulties this group will face when trying to access basic services, such as a loan. Such challenges have often led people to seek alternative, often disadvantageous or informal, financial alternatives.
The country has been taking various steps to improve financial inclusion, including a National Financial Inclusion Strategy in 2016, expected to amplify the effectiveness of existing financial inclusion efforts. The World Bank estimates that further interventions, such as opening up the legal and regulatory environment, could impact 35 million people who are currently saving or making payments outside of the formal financial system.
WHAT WE ARE DOING ABOUT IT
Back in 2015, a group of experts in the UK called the Open Banking Working Group decided to find a way for the banking sector to benefit from the advantages of the digital era. They explored ways in which access to financial data can help consumers better understand their finances and make smarter choices. The result of this initiative was the Open Banking Standard, a guide on how open data from the banking sector should be created, managed and used by its owner(s) and who can access it in what way.
We are working with the Open Data Institute (UK), who are behind the integration of the UK’s Open Banking Working Group), the FinTech Hub and key change-makers in government agencies to recommend a roadmap for a financial information standard in Mexico, with the aim of accelerating financial inclusion. We will be analysing its potential impact on different sectors in Mexico and work with existing FinTech companies to see how they have used and plan to use data to create a roadmap for the standard’s development and adoption.
WHERE & WHEN
Mexico City, as of January 2018
The Open Data Institute (led the integration of the Open Banking Working Group in the UK) and the Fintech Hub with the support of the British Embassy and participation from the National Banking and Securities Commission (CNBV), Bank of Mexico, the Ministry of Finance and Public Credit (SHCP), the Digital Strategy Office, the National Commission for the Pension System (CONSAR), the National Bonding and Insurance Commission (CNSF) and the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF).
OUR MOONSHOT VISION
We want Mexico to be one of the first three countries to publish a financial information standard and to lead an international effort surrounding financial innovation and inclusion.