Victoria Rodríguez Ceja, the governor of the Bank of Mexico (Banxico), has urged banking institutions to join the model of technological innovation and competition that promotes a healthy financial system and greater economic development. At the 88th Banking Convention, she mentioned that the entry of new participants into the financial sector and the use of services through digital channels can create a more competitive environment, with more offerings, lower costs, and benefits for users.
Digitalization in the financial system has brought challenges for both participants and regulators. Banxico believes that, with technological advancement, intermediaries must improve their cybersecurity strategies to protect themselves from potential attacks. Other identified challenges include digital financial inclusion and adaptation to the effects of climate change. Nevertheless, current banking regulation has allowed the sector to remain strong and liquid during times of crisis.
To promote competition and innovation in the financial system, Banxico has authorized the creation of six new banking entities based on the offering of technological services and 86 Financial Technology Institutions (Fintechs). These new actors are transforming the financial system in favor of users and the efficiency of intermediation. Furthermore, competition has been promoted through a payroll portability scheme and a platform to receive personalized offers from various banks based on a standardized credit request.
Rodríguez Ceja emphasizes the importance of expanding the infrastructure for accepting digital payments as a fundamental step toward achieving the objectives of a more inclusive and efficient financial system. In this regard, she urges the continued promotion of these types of operations and highlights the shared commitment between authorities and financial intermediaries to achieve this goal collectively.
