Digital banking, also known as neobanking, is on the rise in Mexico. Unlike other virtual financial companies, these banks have the support of established banking institutions such as Santander, Banorte, Banregio, and Invex. This backing extends to deposit insurance, which is significantly higher in traditional banks compared to virtual financial institutions.
To be considered a bank, digital banks must be licensed by the National Banking and Securities Commission (CNBV). One of the major players in the digital banking space is Hey Banco, a product of Banregio that offers services such as debit and credit cards, personal loans, and high-yield savings. Nu from Brazil has also made significant inroads in the Mexican market by expanding its offerings to include personal loans and savings products.
The success of Hey Banco and Nu has prompted other institutions like Ualá, Invex, Affirme and even established banks like BBVA and Banorte to launch their own digital banking platforms. These digital banks offer greater deposit insurance compared to virtual financial institutions in case of bankruptcy.
While some traditional banks have opted to focus on moving all their services to mobile apps rather than launching a separate digital bank like BBVA does not view technology investments as critical to their success but rather as a means of adapting to changing times.
With more options available for managing finances digitally, consumers in Mexico are presented with an ever-changing landscape of possibilities that reflect the evolving nature of the financial industry and growing demand for digital banking solutions.