In Mexico, digital banks, or neobanks, are gaining popularity as they offer a variety of products and services accessible through smartphones. Unlike other virtual finance companies, neobanks are backed by established banking institutions in the country, such as Santander, Banorte, Banregio and Invek. This support offers deposit insurance that is significantly higher in traditional banks compared to virtual financial institutions.

To qualify as banks, digital banks must be licensed by the National Banking and Securities Commission (CNBV). Hei Banco, a product of Banregio, is one of the main players in the digital banking space and offers services such as debit and credit cards, personal loans and high-yield savings. Brazilian neobank Nu has also made significant inroads into the Mexican market by expanding its offering to include personal loans and savings products.

The success of Hei Banco and Nu has encouraged other institutions to launch their own digital banking platforms. Uala, Invek and Affirme have all entered the market with their own offerings. Even established banks like BBVA and Banorte have entered the digital banking space with their own offerings. These digital banks provide greater deposit insurance compared to virtual financial institutions in case of bankruptcy.

While some traditional banks are focusing on moving all their services to mobile apps instead of launching a separate digital bank, others see technology investments as critical to their success in the digital age. As the digital banking landscape continues to evolve in Mexico, consumers are presented with a wide range of options for managing their finances from traditional banks with mobile apps to fully virtual brick-and-mortar banks. This variety of offerings reflects the changing nature of the financial industry and increasing demand for digital banking solutions.

By Editor

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