The Federal Economic Competition Commission (Cofece) has proposed a series of changes to the fintech sector. These recommendations seek to ensure that more Mexicans gain access to better and more affordable financial services.
According to data from the Bank of Mexico, nearly 20% of the population relies solely on cash for transactions, with no access to other forms of payment. Additionally, the World Bank highlights that Mexico lags behind other Latin American nations in providing basic financial services to its population.
Fintech services, which rely on digital technologies to offer innovative financial solutions, have the potential to bridge this gap. These platforms offer savings, credit, and payment services in a more accessible and convenient manner. However, despite their promise, barriers remain that limit their full potential.
In light of these challenges, Cofece undertook a comprehensive study of the digital financial services market. Per a statement from the commission, the study revealed several issues contributing to limited choices and high costs for consumers. To address these, Cofece put forward several key recommendations aimed at fostering greater competition and enhancing financial inclusion.
One of the main proposals involves simplifying the process for switching between financial institutions. Cofece suggests that consumers should be able to fully transfer their bank accounts, including settings like direct debits, from one institution to another with ease. This would push banks and fintech firms to offer better products and services in an effort to attract and retain customers.
Another major recommendation is expanding payroll portability. While workers can currently transfer their salary between banks, this only applies to the balance and cannot be done with non-bank institutions. Cofece’s proposal calls for this system to be extended to Popular Financial Societies (Sofipos), providing more options for where individuals can receive their wages.
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According to Cofece, improving access to information about financial services is also essential. The commission advocates for clearer, easily accessible details on the services offered by financial institutions, allowing consumers to compare options more effectively. Additionally, incentives should be created to ensure that all fintech companies are registered with appropriate regulatory bodies.
To streamline the financial experience for users, Cofece suggests the establishment of a unified cancellation mechanism for financial products. This would give consumers clearer guidelines on how to cancel services and provide response timeframes for such requests.
Another key recommendation is the promotion of digital correspondents—allowing more commercial establishments and fintech companies to serve as access points for financial services. This measure, according to Cofece, would help reach more individuals in remote and underserved areas.
The commission also emphasizes the importance of encouraging alternative payment methods, such as instant transfers, to provide safer, more convenient digital payment options. This shift could reduce costs for small businesses and combat financial exclusion.
Source: COFECE