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FinTechs belonging to this category provide identification services, which are required for most banking services.
Introduction
Attitude of the country towards identification services
From a financial regulation standpoint, identification services are mandatory, since all entities are required to engage an identification service provider to perform a digital onboarding and to verify information submitted by the user as part of the KYC procedures.
On the other hand, Mexico is a jurisdiction that highly regulates data protection. Data protection authorities are strict in enforcing misuse of personal data.
Legal affairs
Obligations and requirements to provide identification services
No license is required to provide identification services. However, financial entities will require an approval from the CNBV prior to engaging an identification service provider.
Additional comments regarding the legal situation for identification services or what FinTech’s must be aware of in this business area
N/A.
Economic conditions
Market size for identification services and biggest companies in this business area
Market information for identification services is not publicly available. Notwithstanding the above, the clear market leader is Incode Technologies.
Additional comments regarding the economic situation for identification services or what FinTech’s must be aware of in this business area
The current situation for businesses that offer identification services is quickly developing and future regulation could vastly impact the sector, as Mexican regulation tends to heavily protect end users of the financial institutions.