MEXICO Trends and Developments Contributed by: José Ignacio Rivero, Bernardo Reyes Retana, Jacinto Ávalos and Mario de la Portilla, Pérez-Llorca
financial leasing and factoring. The process of obtaining a banking licence is highly regulated, requiring CNBV approval alongside a favourable opinion from the Mexican Central Bank. Many fintechs have now applied for and obtained fully fledged banking licences, which showcases not only their relevance in the Mexican financial mar - ket but also the trust the regulator has in the sector. Given the complexity of Mexican financial reg - ulations, fintechs must carefully evaluate their business models and select the appropriate regulatory structure to ensure compliance. As the sector continues to evolve, fintech players must remain proactive in navigating the legal landscape, balancing innovation with regulatory obligations. Licences, Licences and Licences Since the enactment of Mexico’s Fintech Law in 2018, licensing trends have evolved in response to regulatory challenges and shifting market conditions. Initially, fintech companies actively sought authorisation under the Fintech Law as IFPEs and IFCs. However, 2024 marked a turn - ing point, with authorisations under the Fintech Law dropping significantly from 30 in 2023 to only nine in 2024. This decline was mainly driv - en by low revenue generation in IFPE business models, the high cost of regulatory compliance and increasing pressure on fintechs to achieve profitability. Fintech companies have started considering more robust licences to enhance their business models and increase their range of financial ser - vices. SOFIPOs became an attractive vehicle due to their ability to accept deposits from the public, leading to acquisitions of SOFIPOs by major fintechs such as Nubank and Bradesco. However, SOFIPOs face regulatory limitations,
such as restrictions on payroll portability and foreign funding, making them less versatile than a full banking licence. Recognising these challenges, some fintechs have now shifted towards acquiring or applying for full banking licences, aiming for the ability to roll out a wide variety of financial services and access to a broader customer base. The trend of fintechs pursuing full banking licenc - es is expected to continue in 2025, solidifying their role in Mexico’s financial sector. Among the first acquisitions by a fintech of a Mexican bank was Uala’s purchase of Banco ABC Capital, fol - lowed by Kapital’s acquisition of Banco Autofin, signalling a strategic shift towards pursuing banking licences. Meanwhile, major international players such as Revolut, Nubank and Mercado Pago (Mercado Libre’s financial arm) opted to apply for banking licences from the outset. Over the past two years, the CNBV has authorised five new banking licences and is currently reviewing five more applications, highlighting sustained interest in the sector. Additionally, 2025 is set to mark the launch of new digital banks backed by incumbent institutions such as Santander and Banorte, further intensifying competition in the The collapse of key non-bank financial institu - tions (NBFIs), such as Alpha Credit, Crédito Real and Unifin, previously shook investor confidence, including with respect to funding fintechs’ loan origination. However, emerging players have since gained traction, with some successfully securing financing even from traditional banks; BBVA’s Spark initiative has played a particularly important role in such financings. evolving banking landscape. Lending and Debt Financing
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