Bankers Call for Regulatory Fairness Amid Interest from New Fintechs

13:54 20/09/2024 - PesoMXN.com

After several Sofipos and fintechs have expressed their interest in obtaining a banking license, the Association of Banks of Mexico (ABM) has called for avoiding regulatory arbitrage. "The banking sector welcomes competition and we welcome new players in the market, but it must be under fair conditions. It has taken us a tremendous amount of work, effort, and time to create a financial system that is safe, sound, and dynamic, capable of growing and adapting," said Julio Carranza, president of the ABM, during the Prosa Forum 2024.

The spokesperson for the bankers stated that the products offered by different financial institutions must be under uniform regulation to promote investment incentives in the country. Among the companies that have applied for a banking license in recent months are: Nu, Mercado Pago, Konfío, and Finsus. "The banking sector is committed to staying in Mexico, and we are pleased that new participants are now emerging in the sector (...) not because I want all fintechs to become banks, but because they are recognizing the advantages of being banks to achieve more significant growth," he added. Carranza emphasized that each type of entity in the financial system (such as Sofipos, Sofomes, or fintechs) has its justification, and he hopes that with the arrival of new companies, the priority will be to give people more options on how to manage their money.

It is essential that the regulatory approach remains the same for all players in the financial system. This will not only ensure a fair competitive environment but will also encourage investment and innovation in the sector. The diversification of options for consumers is a positive sign of economic development, which could translate into greater well-being for the population. Competition drives institutions to improve their services and offer more attractive conditions for users.