MEXICO Trends and Developments Contributed by: José Ignacio Rivero, Bernardo Reyes Retana, Jacinto Ávalos and Mario de la Portilla, Pérez-Llorca
Small and medium-sized enterprises (SMEs) lending in Mexico presents a significant oppor - tunity for innovation. SMEs play a crucial role in Mexico’s economy, contributing approximately 40% of GDP and employing nearly 70% of the workforce (CNBV). Despite their importance, SMEs face major challenges in accessing cred - it; fewer than 50% of Mexican companies have applied for a loan at least once (CNBV). The main barriers to accessing credit identified by Mexi - can companies are high interest rates and strict and complex application processes (CNBV). This credit gap creates a significant opportunity for fintech lenders, alternative financing platforms and new banking models to offer tailored lending solutions for SMEs, by leveraging technology, data analytics and alternative credit scoring. New fintech players have captured this oppor - tunity and have successfully raised debt facili - ties from local and international lenders, mainly through tailor-made warehouse facilities to fund their loan originations. Mexico has solidified its position as the leading debt market in Latin America (Endeavour). As mentioned, warehouse financing has become a crucial funding source for lending-focused fintechs. Recently, the Securities Markets Law was amended (and secondary regulations were issued) to provide for a simplified registration of securities, for purposes of democratising access to financing for SMEs through the securities market. In summary, the amendments and the regulation provide for a simplified authorisation procedure for registration of securities with the National Securities Registry, and subsequent public offers directed solely to qualified and/ or institutional investors. The Mexican Stock Exchanges have been actively promoting this initiative, and the authors expect to see (and are hopeful of) lending fintechs accessing the capital
markets in 2025. Prior to the collapse of NBFIs, public securitisations were executed by such
entities on a regular basis. Consolidation of the Sector
Venture capital investment in the Mexican fin - tech sector has matured, with funds investing in later stages and prioritising profitability over aggressive expansion (Endeavour). This shift has led fintech companies to adapt and seek alternatives to achieve profitability. The authors expect to see consolidation in the Mexican fin - tech sector in 2025 as a result of this trend. Past years already witnessed some of the first Mexi - can fintech M&A deals, including the acquisi - tion of Tribal by Klar to expand its SME lending capabilities, and the acquisition of Mexpago by Australian unicorn Airwallex. Additionally, strate - gic partnerships have proven to be an alterna - tive for fintechs to expand their product offer - ings and strengthen their market positions, such as Oxxo’s partnership with NuBank, or Rappi’s partnership with Banorte to launch Rappicard. Conclusions The fintech sector in 2025 will be shaped by regulatory shifts, evolving business strategies and the ongoing push for financial inclusion. Fintechs have evolved beyond being disrup - tors; they are now key players in the financial ecosystem, influencing the strategies of tradi - tional banks and other relevant players of the financial ecosystem (including the regulators). The sector’s development in the coming year will be characterised by licensing trends, growth of the lending market, capital markets activity and strategic consolidations. One of the most pressing challenges remains financial inclusion. Despite being one of the largest economies in Latin America, Mexico continues to lag on several fronts, including
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