Fintech 2025

MEXICO Trends and Developments Contributed by: José Ignacio Rivero, Bernardo Reyes Retana, Jacinto Ávalos and Mario de la Portilla, Pérez-Llorca

2025 is poised to be a pivotal year for the Mexi - can fintech sector, marked by consolidation, regulatory developments, and evolving invest - ment trends. Mexico remains one of the most dynamic fintech markets in Latin America, with significant activity in licensing, funding and stra - tegic partnerships. The growth of the Mexican fintech sector is evidenced by the constant increase of fintech companies operating in Mex - ico. As of 2024, the number of Mexican fintech companies (founded by Mexican nationals) was 773 – an increase of almost 19% compared to 2023. Mexico has also proven to be a relevant destination for foreign fintech players, with more than 217 foreign fintech companies from 22 dif - ferent countries operating in Mexico as of 2024 (Finnovista Fintech Radar Mexico 2024). The entry into the Mexican financial market of rel - evant fintech companies, such as NuBank and Revolut, further positions Mexico as a prime environment for growth among major global fin - techs. Despite being Latin America’s second largest economy, Mexico still faces significant financial inclusion challenges. According to recent stud - ies, Mexico continues to underperform com - pared to other countries in the region in terms of access to financial services. Fewer than 70% of Mexican adults have a bank account, and more than 50% of Mexican companies have never applied for a loan (UNAM and NuBank; the Mexican Banking and Securities Commis - sion (CNBV)). This limited penetration of financial services has significant implications, restricting economic opportunities for individuals and small and medium businesses, while reinforcing eco - nomic inequality. However, this challenge also presents a major opportunity for fintech companies to bridge the gap. The increasing digitalisation of financial ser -

vices has opened new avenues for innovation, allowing fintech players to leverage technology and reach previously underserved populations. Through mobile banking, alternative credit scor - ing and data sources, AI-driven financial solu - tions, fully digital and efficient loan underwriting processes, and (in general) competitive rates and pricing, fintechs have provided access to financial services for millions of Mexicans who were previously excluded. NuBank announced that it alone had granted its ten millionth loan in January 2025, and Spin (the financial arm of Oxxo stores) had onboarded more than 12 mil - lion clients as of September 2024. This disruption is reshaping the financial land - scape, pushing even traditional banks to adapt by launching fully digital offerings and looking to fund fintechs’ loan origination. As the fintech sector continues to grow, a proportionate regu - latory framework will be crucial to sustaining this momentum. Mexico’s financial inclusion gap remains a pressing challenge, but it is also a fertile ground for technological innovation and economic empowerment. Regulatory Considerations for Fintechs in Mexico Mexico has developed a comprehensive legal and regulatory framework for the provision of financial services. For example, Mexico’s novel Fintech Law ( Ley para regular las Instituciones de Tecnología Financiera ) was one of the first regulations of its kind in Latin America. Com - panies offering financial services without the proper licence or authorisation face severe con - sequences, including high fines and even crimi - nal liability. Given the regulatory environment, fintech com - panies must conduct careful legal analysis to ensure that their activities comply with appli -

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