OPEN BANKING FOR INCLUSION
LAYING THE FOUNDATIONS FOR A MEXICAN OPEN BANKING INITIATIVE
We collaborated with the Open Data Institute (UK), that is behind the integration of the UK’s Open Banking Working Group, the FinTech Hub and key change-makers in government agencies to lay the foundations for an Open Banking Standard in Mexico, with the aim of accelerating financial innovation and inclusion. This initiative, commissioned by the British Embassy in Mexico through the Prosperity Fund, aimed at understanding the potential impact of open banking in Mexico, understanding specific challenges and setting forth recommendations to move forward successfully. To learn about next steps, visit www.openbankingmx.com
Read our findings!
Mexico City
January - April 2018
WHY THIS MATTERS
In March 2018, Mexico passed a package of financial reforms known as the FinTech Law. It includes a requirement for Mexico to develop its own Open Banking Standard by 2020.
The idea behind open banking is to to help people gain more control over how they transact, save, borrow, lend and invest their money. Open banking involves the creation of open and standardized APIs - or Application Programming Interfaces - which allow financial service organizations to share information in a safer and more convenient way than ever before.
The increased availability of information in the financial services sector will lead to more competition and collaboration in the ecosystem. New providers and existing ones will have more tools to spot opportunities in the market and develop innovative, user-friendly solutions that respond to consumers' needs. In this disruptive time, providers' complimentary assets and knowledge are expected lead to cross-sector collaborations.
These new solutions will include more and better choices for existing consumers, but also innovative ones for the communities currently excluded from the financial services ecosystem. 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.
WHAT WE ARE DOING ABOUT IT
We worked with the Open Data Institute (one of the participants of the UK Open Banking Standard Development), the FinTech Hub and key change-makers in government agencies to recommend analyze the potential of an Open Banking Standard in Mexico, with the aim of accelerating financial innovation and inclusion. The report, which can be downloaded below, also maps the specific challenges Mexico might face and sets out recommendations for a successful open banking initiative, based on a national analysis and UK lessons-learned. Currently, the Mexican government is using this report to develop a strategy and standard.
OUR MOONSHOT VISION
We want all people have access to innovative financial services, specially underserved people in developing countries. For this, we want countries to adopt open financial data standards to accelerate the sector´s innovation.