A fintech company has successfully received the necessary regulatory approval to function as a bank in Mexico, marking a significant step in its expansion efforts within Latin America. This approval was issued by the National Banking and Securities Commission, along with endorsement from the Bank of Mexico, allowing for operations as a Multiple Banking Institution. Consequently, the fintech will be able to accept deposits and provide regulated banking services within the country.
The company’s CEO expressed gratitude to the Mexican authorities for their support and emphasized the commitment to fostering healthy competition within the financial sector. He expressed confidence that their services would greatly benefit millions of customers across Mexico. The company has tailored its banking application to cater specifically to the local market, ensuring it can serve customers both domestically and internationally.
As part of the rollout plan, the fintech will begin offering services to individuals who had previously joined its waiting list. With the newly granted banking status, customers will have the option of deposit accounts that are safeguarded by Mexico’s deposit insurance agency, which protects deposits up to approximately 3.4 million pesos per individual.
In preparation for this new chapter, the company has been establishing its local operations and expanding its workforce in Mexico. The mobile app is set to deliver a variety of banking and financial management tools to meet customer needs.
This positive development for the company in Mexico is complemented by its recent expansions into markets such as the United States and Brazil. There are plans in place for pursuing a full banking license in Colombia, as well as ongoing efforts to acquire a banking institution in Argentina. The fintech aims to introduce additional offerings in Mexico as it seeks to capture a growing digital banking market. Interested residents are encouraged to register for early access prior to the official launch. While specific launch dates have not been disclosed, preparations are reportedly nearing completion.
Despite the optimistic outlook for expansion in Latin America, the company is facing regulatory challenges in its home market. UK authorities have postponed its application for a full banking license due to concerns related to global risk controls linked to its rapid growth strategy. Previously, the company garnered a restricted banking license from the Prudential Regulation Authority (PRA) as part of a “mobilization” phase that allows limited operations while working toward fulfilling broader regulatory standards. Under this mobilization, the fintech can accept only up to £50,000 in total customer deposits, which restricts its banking activities within the UK significantly.
In summary, the successful regulatory approval in Mexico represents a foundational step for expansion into the Latin American market, underscoring ambitions to grow the company’s international presence while providing innovative financial solutions tailored to meet customer demands.