RegTech and compliance management
RegTech is composed of the words “regulatory” and “technology”. It is a collective term for the application of modern technologies, to get the increasing regulation in the banking- and financial sector under control both from an IT and a legal standpoint.
Attitude of the country towards RegTech-services
The banking and financial institutions are always looking to expand and comply with new regulations. Since Mexico is a regulation heavy country, specifically when overseeing banks, the wide search for tools that help comply with regulation is ongoing and therefore the climate is positive.
Obligations and requirements to provide RegTech-services
Currently the governing bodies do not specifically regulate RegTech companies or RegTech service providers which means that so far, the sector in Mexico is operating under the “standard” company regulations such as complying with applicable norms such as data protection policies, capitalisation minimums, formal incorporation etc.
Additional comments regarding the legal situation for RegTech-services or what RegTech’s must be aware of in this business area
As the RegTech sector continues to expand, the future of regulation is sure to be stricter with the defence of the end customer always in mind and stricter data policies sure to come into effect. The regulator is constantly looking to create further inclusion in the financial sector, so RegTech companies are a “shoo-in” within the Mexican regulatory client.
Market size for RegTech-services and biggest companies in this business area
The current state of the RegTech sector along with the general FinTech sector within Mexico is one (1) positive expansion. This is due to the exponential growth and the vast amount of compliance to be done within the financial sector.
Additional comments regarding the economic situation for RegTech-services or what RegTech’s must be aware of in this business area
Regarding the current economic situation, the volatility of current political financial policies could lead to rapid restriction of the sector.