Neobanks, or digital banks, are gaining popularity in Mexico due to their convenience and accessibility. These banks offer a variety of products and services that can be accessed through a smartphone. Unlike other virtual financial companies, neobanks have the backing of established banking institutions in the country, such as Santander, Banorte, Banregio, and Invex. This support includes deposit insurance, which is higher in traditional banks compared to virtual financial institutions.
To become a licensed bank, neobanks must go through rigorous regulations set by the National Banking and Securities Commission (CNBV). One of the leading players in the digital banking space is Hey Banco, a product of Banregio that offers debit and credit cards, personal loans, and high-yield savings. Nu from Brazil has also made significant strides in Mexico with its personal loans and savings products.
The success of Hey Banco and Nu has prompted other institutions like Ualá, Invex, and Affirme to launch their own digital banking platforms. Even established banks like BBVA and Banorte are entering the digital banking space with their own offerings. These banks offer greater deposit insurance compared to virtual financial institutions if they were to go bankrupt.
While some traditional banks like BBVA are focusing on moving all their services to mobile apps rather than launching a separate digital bank, others view technology investments as critical to their success in the digital age. As the landscape for digital banking continues to evolve in Mexico, consumers have an array of options for managing their finances from traditional banks with mobile apps to fully virtual neobanks.
The growing demand for digital banking solutions reflects the changing nature of the financial industry as it becomes more accessible and convenient for consumers. With neobanks offering similar services at lower costs than traditional banks, it’s no surprise that they are becoming increasingly popular among Mexican consumers looking for innovative ways to manage their money.