First Fintech authorization issued by the National Banking and Securities Commission

Almost two years after the approval of the so-called Fintech Law (Law to Regulate Financial Technology Institutions) in Mexico and one year after the publication of the Fintech Provisions (General Provisions applicable to Financial Technology Institutions), on January 22, 2020, the authorization for the organization and operation of an electronic payment fund institution (also known as wallets) under the name NVIO Pagos Mexico, S.A.P.I. de C.V., Institución de Fondos de Pago Electrónico, was published in the Federal Official Gazette (DOF).

This is the first authorization that the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores (CNBV)) issues in favor of a Financial Technology Institution (Fintech) out of 85 applications that the authority received to operate (60 of these applications were submitted to operate as electronic payment fund institutions (wallets) and 25 of them to operate as crowdfunding institutions). This authorization will allow NVIO to provide the services of issuance, management, redemption and transmission of electronic payment funds through computer applications, interfaces, websites or any other electronic or digital media.

From now on, NVIO has a six months term to evidence to the CNBV that it has initiated operations, under penalty that the authority may revoke the issued authorization. Once the operation of the electronic payment funds institution has started, the CNBV, the Mexico Central Bank (Banco de México) and the National Commission for the Protection and Defense of Financial Services Users (Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros (CONDUSEF)) will be the authorities in charge of supervising its operation.

Considering that the Mexican Government has placed its hopes in Fintech to attack the low financial inclusion in the country, it is expected that the authorities will continue to grant authorizations like the one mentioned here.

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