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Financing, investment and government support

Government support

Does the government provide any incentives or support programmes to promote fintech innovation in your jurisdiction (eg, tax incentives, grants and regulatory sandboxes)?

Government authorities have not issued any tax incentives promoting fintech businesses in Mexico. While the ancillary provisions to be issued by the Ministry of Finance or the Banking and Securities Commission (CNBV) may result in such incentives, these will not be determined until the provisions are issued.

Certain government institutions provide funding to start-ups, including fintech start-ups. The National Institute for Entrepreneurs provides benefits for financial technology institutions (FTIs), including support for their products and the provision of working tools. FTIs can also apply for financial support by responding to calls posted in the operation rules of the National Institute for Entrepreneurs (found in the Mexican Official Gazette).

The Law to Regulate Financial Technology Institutions foresees regulatory sandboxes for FTIs, as long as they provide services – other than crowdfunding or electronic payment funds – using new technologies. FTIs subject to regulatory sandboxes will be granted a temporary authorisation to operate without fully complying with all of the regulations applicable to fintech businesses and FTIs, as discretionally resolved by the corresponding financial authorities (ie, the Supervisory Commissions, the Central Bank and the Ministry of Finance).

Has the government concluded any international cooperation agreements to promote and facilitate the cross-border expansion of fintech businesses?

The government has not entered into international agreements to promote cross-border expansion of fintech businesses.

Financing and investment

What private financing and investment schemes are available and commonly used for fintech start-ups in your jurisdiction?

 Several private organisations in Mexico (eg, Startup Mexico, Venture Institute and Angel Ventures Mexico) provide funding and business advisory and mentoring for start-ups and have been deeply involved in developing FTIs in recent years. Many venture capital funds invest in seed, early stage and growth capital for FTIs. Such private organisations contribute to promoting innovation and entrepreneur culture in Mexico, with the goal of local and international economic development. They convoke entrepreneurs that are interested in establishing cooperative relationships and providing seed capital and services to promote businesses; the calls are usually open to students, entrepreneurs, mentors, investors and companies.

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