Revolut has announced that it has obtained final
regulatory approval to operate as a bank in Mexico, clearing the way for the
UK-founded fintech to begin offering local financial services as it accelerates
its expansion in Latin America.
The authorization was granted by Mexico’s National
Banking and Securities Commission, with approval from the Bank of
Mexico. The license allows Revolut to operate as a Multiple Banking
Institution, meaning it can now accept deposits and offer regulated banking
products in the country.
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Customized Banking App for Mexico
“We are very grateful to the authorities for this
vote of confidence and their commitment to fostering competition in the
industry, and we are confident that our offering will benefit of millions of
people across the country,” said Juan Miguel Guerra, CEO of Revolut Bank
S.A., Institución de Banca Múltiple, Revolut’s bank in Mexico.
“We have tailored our world-class banking app to
serve customers across Mexico, while at home or abroad, and this is just the
beginning,” he continued. “We will continue to innovate and launch more products to serve all
our customers’ needs in one place, so stay tuned!”
Revolut said it will now start rolling out services to
users who previously registered on its waiting list. With full banking status,
Revolut will offer deposit accounts protected by Mexico’s deposit insurance
agency, IPAB (Instituto para la Protección al Ahorro Bancario), for up to
approximately 3.4 million pesos per customer.
The company has been building local operations and
continues to hire across functions in Mexico. Through its mobile app, it plans to introduce a suite of banking and money management tools.
Following Expansion into Brazil and the US
The approval strengthens Revolut’s presence in the
Americas, following its entry into the United States and Brazil. The fintech is
also seeking a full banking license in Colombia and is in the process of
acquiring a bank in Argentina.
Revolut said it aims to launch additional products in
Mexico over time as it works toward capturing market share in a region where
digital banking adoption continues to grow. Mexican residents can register for early access ahead
of the public launch. Revolut did not disclose a specific launch date but said
preparations are in the final stage.
Even as
Revolut expands its offerings globally, challenges persist on its home
turf. UK regulators recently delayed Revolut’s application for a full banking license
due to concerns over the company’s global risk controls linked to its rapid
international expansion.
The UK-based
fintech received a restricted banking license from the Prudential Regulation
Authority (PRA) last year as part of the standard “mobilization” phase, which
allows firms to operate with limitations while preparing to meet full
regulatory requirements.
Under this mobilization
period, Revolut is permitted to accept only up to £50,000 in total customer
deposits, significantly limiting its banking operations in the UK.
This article was written by Jared Kirui at www.financemagnates.com.
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