Digital onboarding is one of the tools that is driving financial inclusion in Mexico; however, the regulation for identifying users remotely is not yet optimal, according to industry practitioners. Alehira Orozco, president of Fintech Mexico, says that a more flexible approach to regulations could provide users with a better digital onboarding experience. “Although there are improvements, the regulator is still thinking of a traditional industry where a handwritten signature and paper are required. The fintech industry can make these processes much simpler and faster,” she said. Jose Quesada, vice-president of regulatory policy at CNBV, explained that digital onboarding faces two challenges: inconsistent technology capabilities among financial institutions – and an incomplete electronic identity system. The CNBV representative did not rule out the possibility of continuing to “calibrate” the regulation and keep up with digital evolution. “Sometimes it seems that we are hitting the gas and the brakes at the same time, but it is very important to reinforce these processes,” he said, referring to the Know Your Customer (KYC) rules, which are key in money laundering issues.

https://iupana.com/2021/04/12/id-regulations-hinder-digital-onboarding-in-mexico/?lang=en