Revolut Gets OK to Begin Banking Services in Mexico

Revolut’s international expansion marches on with new banking permissions in Mexico.

The U.K. FinTech giant announced Monday (Oct. 20) it had been granted final authorization from the National Banking and Securities Commission (CNBV), with approval of the Bank of Mexico, to start operations as a multiple banking institution in the country.

The approval “is the last regulatory step required before opening the bank’s doors to the public, cementing its long-term commitment to the Mexican market,” Revolut said in a news release.

“This milestone completes Revolut’s journey to becoming the first independent digital bank to directly apply for and successfully complete the full licensing and approval process ‘from scratch’ in the country. Revolut is now preparing to launch its product to people in Mexico who have signed up on the waiting list.”

Based in London, Revolut has been extending its financial services operations into markets around the world, including Latin America.

Last year saw the report that the company was investing more than $100 million into Mexico’s remittance market.

Speaking with Reuters, Revolut Mexico CEO Juan Miguel Guerra said most of that cash will be used for staffing and to cover short-term debt and expenses and maintain a strong cash-on-hand balance.

“We will be watching how the business evolves,” he said. “The faster it grows, the more bets we will make.”

And in June, the company announced it was acquiring Banco Cetelem, a small Argentinian lender owned by BNP Paribas.

This latest approval comes less than two weeks after Revolut received permission to establish banking operations in Colombia. The company says it aims to launch a portfolio of financial products and services in the South American nation next year.

PYMNTS explored the digital banking space in Mexico earlier this year in an interview with Tory Jackson, head of business development and strategy for Latin America at Galileo Financial Technologies.

He noted that in Mexico, the term “FinTech” carries a specific legal meaning, referring to a regulated license under Mexican law. The rise of these licensed FinTech entities has pushed traditional banks to reevaluate their strategies.

“Allowing for these different type of licenses to exist means different sorts of entities that can issue new products and services — and it really is pushing all of these traditional banks and institutions to look in the mirror and say, ‘Look, we need to be able to serve more of this population,’” Jackson said. “We need to enhance our products, especially our digital products.”