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Revolut to become a bank in Mexico

Wednesday 10 April 2024 12:19 CET | News

UK-based fintech unicorn Revolut has gained approval from Mexico's National Banking and Securities Commission (CNBV) to establish itself as a bank in Mexico.

 

The new bank aims to commence operations with its flagship product, namely instant international transfers. The path to obtaining a banking license in Mexico has been a significant step for Revolut, given its presence in nearly 40 countries and various financial licences.

Revolut officials highlighted Mexico's unique opportunity, with a large unbanked population and a concentrated banking sector. The company aims to address these challenges by offering comprehensive financial services through its app, starting with international transfers.

The decision to pursue a banking licence reflects Revolut's strategy to provide a wide range of financial products within a single platform. The model emphasises efficiency and cost-effectiveness, leveraging the existing global infrastructure to minimise operational expenses in Mexico.

Revolut aims for diversification as a way to support its revenue and profitability. This approach, characteristic of the firm on a global scale, prioritises sustainable growth over being the first mover in the market.

Despite challenges in obtaining banking licences in other countries such as the United States and the United Kingdom, Revolut's expansion into Mexico marks a step forward for the company according to eleconomista.com.mx. Revolut's Mexico lead acknowledged the rigorous process involved in securing the licence but emphasised its importance in ensuring consumer protection.

Revolut's ability to self-finance its growth through profits underscores its financial stability within the fintech ecosystem. While official figures for 2023 are unavailable, eleconomista.com.mx cites industry records and reports that Revolut's valuation has been estimated close to USD 15.6 billion.

Looking ahead, Revolut officials talked about the need for regulatory frameworks in Mexico to facilitate the entry of more players into the banking segment. They also expressed readiness to collaborate with authorities to promote competition and enhance the stability of the Mexican financial system.

With Revolut joining the ranks of authorised banking institutions in Mexico, the total count stands at 53, with three institutions, including Revolut, working towards commencing operations in the near future.

 

UK-based fintech unicorn Revolut has gained approval from Mexico's National Banking and Securities Commission (CNBV) to establish itself as a bank in Mexico.

 

What else has Revolut been up to?

In March 2024, Revolut launched a Point-of-Sale iPad app to support businesses in the hospitality industry. Revolut POS is an iPad-based Point of Sale app aimed at addressing various challenges faced by businesses in the hospitality sector.

Designed with a user-friendly interface and comprehensive tools, Revolut's offering aims to provide a seamless solution for businesses without the need for lengthy contracts or extensive administrative tasks, with a focus on improving customer care and driving sales growth.


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Keywords: banking, super app, expansion, financial services
Categories: Banking & Fintech
Companies: Revolut
Countries: Mexico
This article is part of category

Banking & Fintech

Revolut

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