Financial markets in Mexico are evolving for the better, with many projects and initiatives underway to help improve the financial systems within the country.
For financial institutions in Mexico, digital services like mobile apps and digital wallets are on the rise, largely thanks to changes to banking regulation and accessibility.
In this article, we will discuss 3 of the biggest digital banking trends in Mexico in 2022. Keep reading to learn about the state of the digital banking industry in Mexico and how CPQi can help Mexican financial institutions stay ahead.
3 Key Digital Banking Trends to Watch in Mexico
Here are 3 key trends to watch in Mexico:
1. Open Banking Initiatives
Open banking is a type of banking that allows financial institutions, FinTechs, and other financial companies to freely share data and information when given the explicit consent of customers.
Taking inspiration from the PSD2 regulation implemented in Europe, Mexico sought to create its own version of a regulated open banking system. This came in the form of the Fintech Law in which financial institutions and third-party service providers will share two types of data:
Open Data: Open data includes all information generated by regulated entities; however, it does not include confidential information.
Aggregated Data: Aggregated data includes statistical information regarding transactions, but does not include personally identifiable information to be exchanged.
The introduction and implementation of this law show a clear prioritization of open banking, marking this banking method as one of the biggest trends within the region.
2. Improvements to Banking Accessibility
In Mexico, financial inclusion and banking accessibility are two areas of the Mexican financial industry that FinTechs and other financial professionals are working to improve.
According to The World Bank (also called the Bank), just 37 percent of Mexican adults have financial accounts, with only 32 percent having made or received digital payments. To help address this problem, The Bank supports projects such as the Financial Inclusion DPF, which aims to provide a better regulatory framework for FinTech within Mexico.
This push for greater banking accessibility in Mexico marks a shift toward greater reliance on more inclusive financial institutions and services, such as crowdfunding institutions and electronic payment funds institutions.
3. Digital Payments are On the Rise
Like many other countries around the world, Mexico has experienced a noticeable rise in the popularity of digital payments.
According to Statista, the entire digital payments sector in Mexico is expected to reach a value of $72.81 billion(USD) by the end of 2022. Additionally, the value of digital payments is expected to grow by more than 15% each year, reaching an estimated $129.9 billion by 2026.
This growth of digital payments in Mexico is represented largely by an enthusiastic adoption of mobile e-commerce by Mexican citizens. Moreover, according to JP Morgan, the high rate of people without access to banking services will help drive the adoption of mobile e-commerce services. JP Morgan further states that:
“Smartphones and apps with digital wallet options allow unbanked citizens to access and purchase products without a bank account.”
Final Thoughts: CPQi Helps Mexican Banking Providers Thrive
Staying ahead of the digital curve is essential — especially in countries like Mexico where the digital banking industry is rapidly growing.
Here at CPQi, we have offices all across the Americas — including Latin America and Mexico.
With highly trained experts who are skilled in both finance and technology, CPQi has the support your institution needs for digital transformation, managed services, and staff augmentation. We have carried out many successful implementations of digital financial platforms, open banking software, robotic process automation and more.
Plus, we offer end-to-end execution and ongoing support to ensure your institution always has the best possible digital services and products to provide to customers.
The time is now to partner with CPQi. Get started with one of our teams today by contacting us to schedule a call. We take everything into consideration when determining the scope of your project, so you are guaranteed to receive a solution that is the perfect fit for your institution.