Introduction and Relevance
Mexico possesses the necessary conditions for the development of open finance (open banking) and open banking, yet a comprehensive regulatory framework is missing, hindering widespread adoption and maximizing benefits. This was highlighted by technology solutions firm Sellcom during the upcoming “Open Banking 2025” event presentation.
Sellcom’s Perspective
“Mexico already has all the necessary components; we have worked with them. Only a legal framework is needed to integrate everything and fully utilize the ecosystem,” stated Edgar García-Barzanallana, head of open banking at Sellcom.
Global Progress and Mexico’s Current Status
Sellcom pointed out that other countries have shown concrete results from implementing open finance, such as a model allowing users to share financial data with authorized third parties for better services.
- United States: Over 100 million people have authorized third-party access to their financial data.
- United Kingdom: More than 10 million consumers and businesses regularly use open finance-based tools.
“It’s not just about consent; it’s about actively and consistently using open finance-enabled solutions. In Mexico, we’re still a bit behind in that adoption curve,” added García-Barzanallana.
Mexico’s Regulatory Landscape
Article 76 of Mexico’s Financial Technology Regulation Law (Fintech Law), published in 2018, laid the groundwork for an open finance model. However, seven years later, secondary regulations enabling full operation still haven’t been published.
“In 2018, when Mexico became a pioneer with the Fintech Law, regulations were established for sharing aggregated non-sensitive data. This led to financial sector applications allowing the location of all ATMs and bank branches, regardless of institution. Today, anyone can check nearby ATMs or branches using their mobile phone; this obligation was set by the regulation,” explained Fernando Beltrán, senior partner at Sellcom.
Existing Use Cases in Mexico
Although open finance’s potential hasn’t been fully explored in Mexico, Sellcom executives noted that real-use cases have existed for a few years. Technologies like APIs (application programming interfaces) have facilitated financial data exchange, paving the way for broader open finance model adoption.
Global Impact and Potential for Mexico
Globally, it’s estimated that around 29% of financial products will be transformed by open finance. Financial institutions adopting these technologies could see a 10% revenue growth from new business opportunities and increased efficiency, according to Sellcom’s estimations.
Key Questions and Answers
- What is open finance? Open finance, or open banking, refers to a framework that allows users to share their financial data with authorized third parties for improved services and innovative solutions.
- Why is a regulatory framework important for open finance in Mexico? A comprehensive regulatory framework is crucial for widespread adoption, maximizing benefits, and ensuring secure data sharing in Mexico.
- What progress has been made in open finance globally? Approximately 29% of financial products are expected to be transformed by open finance, with institutions adopting these technologies potentially seeing a 10% revenue growth.
- What is Mexico’s current status regarding open finance regulations? Although Mexico has the necessary conditions for open finance, a complete regulatory framework is still missing. The Fintech Law of 2018 laid groundwork, but secondary regulations for full operation haven’t been published yet.
