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Mexican neobank Hey to split from Banregio by 2025

Monday 5 February 2024 15:35 CET | News

Mexico-based neobank Hey has announced that it will go independent from Banregio by year 2025.

 

In road to independence, following the legal and statutory approval of its establishment, Hey Banco is in the process of securing necessary operational authorisations from various government bodies, including the Comisión Nacional Bancaria de Valores and Banco de México for SPEI services, alongside permissions for incorporating banking correspondents like Oxxo or Farmacias del Ahorro.

Hey has announced that it will go independent from Banco Banregio by year 2025.

One of the significant challenges in this split-off involves migrating Hey’s customer base to the new entity, which requires additional regulatory approvals. The goal is to complete this extensive process within 2024, aiming for a late December 2024 or early 2025 operational launch as an independent entity.

Regional's dual approach to banking

Unlike its competitors who have pursued digital platforms to expand into the mass consumer market, Regional launched Hey Banco in August 2019 with the aim of strengthening its presence in the consumer banking sector, including credit cards and savings accounts. Navarro emphasised that Banregio will continue focusing on small to large businesses and high-income individuals requiring personalized advisory, ensuring that the two entities do not cannibalise each other’s market.

Further, Navarro shared insights into Banregio’s ongoing commitment to enhancing its digital banking capabilities, influenced by the learnings from Hey. With a plan to open over 20 new branches in 2023, reflecting an investment of USD 6.9 million, alongside significant investment in their Cooperative Center in San Nicolás de los Garza, Nuevo León, Regional underlines the continued importance of physical banking touchpoints for customer engagement and support.

Even in the digital domain with Hey, the establishment of contact points that offer merchandise and advisory services underscores the enduring value of physical presence in banking, balancing digital innovation with traditional customer service ethos.


Source: Link


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Keywords: neobanks, digital banking, online banking, digitalisation, banking
Categories: Banking & Fintech
Companies: Banregio, Hey
Countries: Mexico
This article is part of category

Banking & Fintech

Banregio

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Hey

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