A fintech company has recently received final regulatory approval to operate as a bank in Mexico, allowing for the provision of local financial services as part of its expansion efforts in Latin America. The authorization was granted by the National Banking and Securities Commission in Mexico with the endorsement of the Bank of Mexico. This license designates the fintech as a Multiple Banking Institution, enabling it to accept deposits and offer regulated banking products within the country.
A spokesperson for the company expressed gratitude to the authorities for their support in promoting competition within the banking sector. They emphasized the intention to create a tailored banking experience that caters to users both within Mexico and abroad. The spokesperson hinted that this was only the beginning and promised further innovations and additional products in the future.
The company plans to start providing services to individuals who had signed up on a waiting list. With its new banking status, customers will have access to deposit accounts protected by Mexico’s deposit insurance agency, covering amounts up to approximately 3.4 million pesos per individual. To enhance local operations, the fintech has been actively hiring in various roles across Mexico and aims to introduce a range of banking and money management tools through its mobile application.
This development marks a significant strengthening of the company’s presence in the Americas, following previous expansions into the United States and Brazil. They are also working towards acquiring a bank in Argentina and securing a full banking license in Colombia. Plans are in place to launch additional products in Mexico as part of a strategy to capture market share in a region experiencing growing adoption of digital banking. Mexico residents are currently able to sign up for early access before the public launch, although a specific date for this has not been disclosed and preparations are reported to be in the final stages.
Despite the positive growth in Mexico and other regions, there are ongoing challenges in the company’s home market. Recent regulatory actions in the UK have put a delay on its application for a full banking license, prompted by concerns related to global risk controls amid its rapid international growth. Last year, the fintech received a restricted banking license as part of a standard “mobilization” phase, allowing operations with certain limitations until full regulatory standards are met. During this transitional period, the fintech is only authorized to accept a maximum of £50,000 in total customer deposits, which significantly restricts its banking capabilities in the UK.
As the fintech moves forward with its expansion and seeks to solidify its market presence, it faces a dual challenge of capitalizing on growing digital banking trends while navigating regulatory landscapes in different countries. The commitment to innovate and adapt its offerings will be essential as it seeks to establish itself firmly within the competitive landscape of banking in Latin America and beyond.