As technology goes by, the financial sector has come to the necessity to improve its services through new business models or companies called Financial Technology Companies (FinTech). An example of a Fintech is PayPal, where its users create an account they will be able to use every time an electronic payment is done instead of providing their bank account data.
Due to the fast development of this companies, it has become of the most importance to create a new law that will regulate them. For this reason, Mexican authorities will send the Congress an initiative that will provide financial and legal security to the Fintechs, regulating three important aspects:
- Electronic Funds Transfer or EFTs- They are the regular electronic transfers from one bank account to the other or from one bank institution to the other without the intervention of a bank assistant.
- Crowdfunding-Is an electronic funding for certain types of projects where the user does not have to give back the money; instead he will be able to make an altruist activity that will vary according to the type of funding.
- Virtual Assets- Digital tools with certain economic value that allow communication between a certain brand and its users. Usually the property of this assets belongs to both, the company and its users, due to their digital characteristic; for example, Facebook and Twitter.
All the FinTech companies investing in Mexico and those who wish to do so, must fully know the content of this new law. Kudo y Niño de Rivera Abogados is always at the forefront on the legal sector; for this, their legal specialists are qualified to give advice, security and legal certainty to all companies, so they can ensure their legal establishment and functioning.