Peer-to-peer lending and crowdfunding skyrocket in Mexico

Cumplo, a peer-to-peer lending and crowdfunding firm, landed in Mexico in January 2018 and has financed credits for over 200 small and medium businesses

Peer-to-peer lending and crowdfunding skyrocket in Mexico
Mexico has one of the most advanced fintech laws - Photo: File Photo/EL UNIVERSAL
English 14/03/2019 12:26 EL UNIVERSAL in English/Gretel Morales Mexico City Actualizada 12:26
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Financial technology, also known as fintech, is on the rise and Mexico is no exception. This industry makes it easier to save, borrow and invest money online or through a mobile device.

Fintech aims to provide financial services directly to the user, with fewer intermediaries and also presents new investment opportunities.

This rising industry includes cryptocurrencies, crowdfunding, peer-to-peer lending, mobile payments, robo-advising, and insurtech.

Mexico has one of the most advanced fintech laws, which was issued in September 2018. The Fintech Law is meant to regulate financial and technological institutions in Mexico, making it the first country in Latin America to establish a legal framework for this type of companies.

The law focuses on money laundering controls which will force companies to report on any suspicious activity and apply prevention schemes to prevent laundering but it also aims to prevent fraud, theft, and hacking in the country’s financial institutions.

Now, with a legal framework to protect consumers and investors, fintech companies are landing in Mexico and taking the finance industry by storm. One of these companies is Cumplo, a peer-to-peer lending and crowdfunding firm.

The Chilean firm landed in Mexico in January 2018, and in 15 months, they have financed credits for over 200 small and medium businesses with MXN $60 million.

Cumplo launched a platform where both investors and business owners can find new opportunities. The firm evaluates the risk the business requesting a credit represents, and once it passes this filter, investors can evaluate whether or not to grant them credit.

This way, small and medium businesses can reach their full potential and investors can boost the local economy and obtain financial gains.

Therefore, peer-to-peer lending firms such as Cumplo create bridges between Mexican entrepreneurs and investors.

Cumplo is set to launch an app on May and plans to open offices in Monterrey, Guadalajara, and Cancun.

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