Introduction to Fintechs and Their Impact on Mexico’s Financial System
The rise of fintechs in Mexico is a positive development for users of the country’s financial system, addressing historical issues of competition and financial inclusion that have plagued Mexican banking. In April 2025, Nu México, a subsidiary of Nubank Brasil, received authorization from the CNBV to operate as a bank in Mexico. Other tech financial companies, such as Mercado Pago and Revolut, are also advancing in the same direction. However, regulatory authorities must remain vigilant to prevent these new players from introducing systemic risks to financial stability.
Understanding Fintechs and Their Digital Offerings
Fintech refers to the convergence of innovative technologies with traditional financial services, creating a wide range of solutions from payment and credit systems to investments and other value and capital exchanges (Asociación Fintech México, 2025). These institutions deliver their services through digital platforms, websites, mobile apps, and social media, ensuring efficient access to their products and services (CONDUSEF, 2020).
Fintechs: A Catalyst for Financial Inclusion
Fintechs play a crucial role in financially including traditionally marginalized sectors of the banking industry, such as small consumers, independent self-employed individuals, and microentrepreneurs. They are a global growth trend with accelerated expansion. In Mexico, their development has been organic through the figure of SOFIPOS – small banks authorized to capture public consumer savings. Their growth is linked to the digitalization of financial services and product diversification, enabling them to create more agile, personalized, and accessible solutions for a broad audience with previously untapped populations by traditional banking.
Fintechs vs. Traditional Banking: A Comparison
Fintechs challenge the status quo of a banking system offering low or no-interest savings and charging high fees. The innovation and low transaction costs of these financial institutions, free from branch expenses and significant operating costs, allow them to generate better returns for their customers. This growth has propelled the fintech ecosystem to near 20% annual growth rates (Asociación Fintech, op. cit.). A possible explanation for this growth is the need for credit among Mexicans, with only 37% of the population having credit within the financial system (ENIF 2024), compared to 60% in Brazil.
Nu México: A Case Study in Fintech Evolution and Risks
Nu México serves as evidence of credit evolution in Mexico, benefiting both customers and regulatory concerns. As the first fintech to transform from SOFIPO to a bank in Mexico, Nu México has invested over USD 1.3 billion in the Mexican market and already boasts 12 million customers without physical branches, offering an exclusive digital service. The company has gained market share due to the 8% return on a savings product called “Cajita” and the 15% return on another savings product, “Cajitas Turbo.”
However, regulatory authorities must monitor Nu México’s increased compliance costs and required reserves following its transition from SOFIPO to a bank. Additionally, attention should be paid to the performance of their delinquent portfolio, with an 8% delinquency rate compared to the average bank delinquency rate of 2% according to CNBV data as of 2024.
Key Questions and Answers
- What are fintechs and how do they impact Mexico’s financial system? Fintechs are innovative technology-driven financial service providers that offer digital platforms for various services, including payments, credit, investments, and more. They have positively impacted Mexico’s financial system by increasing competition and financial inclusion, addressing historical issues in traditional banking.
- What are the risks associated with fintechs? Although fintechs bring benefits, regulatory authorities must monitor systemic risks and ensure that these new players do not threaten financial stability. Additionally, the delinquency rates of fintechs, like Nu México’s 8%, require close attention to prevent negative impacts on returns.
- How do fintechs compare to traditional banks in Mexico? Fintechs offer better returns, lower fees, and more agile services compared to traditional banks that often provide low-interest savings with high fees. The growth of fintechs in Mexico reflects the demand for credit among the population, with only 37% having access to formal credit within the financial system.
