Body
FinTechs belonging to this category act as a loan creditor (even short and very short-term loans), are broking loans or receivables or conduct factoring of loans, which were given to private or business customers. In this business area you also find “peer-to-peer” (P2P) services, in which FinTechs enable a multitude of users to give loans (and brokered by the FinTech-platform) to other users or companies.
Finetrading is hereby a financial service of FinTechs, where they buy due receivables and grant the debtor an extension of payment time.
As an ancillary service some FinTechs offer alternative credit assessment services to check the solvency of a borrower.
Introduction
Attitude of the country towards loan-giving-, factoring-, brokerage-, finetrading- and ancillary services
Loans, factoring, and related loan services are not restricted to financial entities in Mexico and may be offered by any individual or entity. Notwithstanding the above, the professional granting of loans is subject to consumer protection rules and anti-money laundering regulations.
Legal affairs
Obligations and requirements to provide loan-giving-, factoring-, brokerage-, finetrading, and ancillary services described above
General commercial laws would be applicable to most loan operations. Notwithstanding the above, there are specific rules that must be complied with if the services are rendered as the principal business of a given entity.
Consumer protection legislation is applicable to such services, both for financial and commercial entities, with a specific set of rules applicable to each type of entity.
Likewise, businesses that render such services professionally will be subject to anti-money laundering rules.
Additional comments regarding the legal situation for loan-giving-, factoring-, brokerage, finetrading-, and ancillary services or what FinTech’s must be aware of in this business area
FinTechs should consider that, although loan activity is not restricted to a specific type of entities, some types of financial entities (such as IFPEs) are not allowed to grant loans.
Economic conditions
Market size for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services and biggest companies in this business area
Publicly available data regarding loans is only available for banks and other financial entities. However, these numbers provide a limited scope since the market is not exclusively served by financial entities. For example, retail commercial entities are known for successfully offering loans to their customers (consumer loans, personal loans, credit cards etc).
Additional comments regarding the economic situation for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services or what FinTech’s must be aware of in this business area
N/A.