In Mexico, neobanks or digital banks are gaining popularity. Unlike other virtual financial companies, these banks have the support of established banking institutions such as Santander, Banorte, Banregio, and Invex. They offer a variety of products and services accessible through a smartphone.
To be considered a bank in Mexico, neobanks must be licensed by the National Banking and Securities Commission (CNBV). Hey Banco, a product of Banregio, is one of the major players in digital banking space in Mexico. It 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 with personal loans and savings products.
The success of Hey Banco and Nu has inspired other institutions like Ualá, Invex, Affirme to launch their own digital banking platforms. Even established banks like BBVA and Banorte have entered the digital banking space with their own offerings. These banks offer greater deposit insurance compared to virtual financial institutions if they go bankrupt.
While some traditional banks like BBVA have opted to focus on mobile apps instead of launching separate digital banks, consumers now have a range of options for managing finances from traditional banks with mobile apps to fully virtual neobanks. The diversity of offerings reflects the changing nature of the financial industry and increasing demand for digital banking solutions.
As technology continues to evolve in Mexico’s digital banking landscape, consumers can expect even more options for managing their finances in the future.