Mexico’s Digital Financial Company, Plata, Becomes a Full Bank
The Mexican digital financial company, Plata, has earned final approval from the National Banking and Securities Commission (CNBV) to operate as a full bank, ending a three-year application process. This milestone allows Plata to extend its existing credit card business, which currently serves 3 million active users solely via a mobile app.
Plata’s Expansion Plans
The institution operates without physical branches and plans to expand its product range following the licence approval. Plata’s latest funding round evaluated the firm at $3.1 billion, as reported by Bloomberg. The official sanction allows new digital entities to boost competition and increase access to banking services.
CEO’s Statement
Neri Tollardo, the co-founder and CEO of Banco Plata, has commented on the company’s achievement. He stated, “The level of scrutiny and the processes by the regulatory authorities to reach this point are the main reasons why the banking sector in Mexico has remained one of the strongest and most solid in the world.”
Plata’s Position in the Fintech Market
The approval sets Plata ahead of other fintech companies seeking similar status. Mercado Pago, a part of MercadoLibre, and Brazil’s Nubank are still awaiting regulatory approval. Meanwhile, Nubank has succeeded in securing initial authorisation in April. In other news, Mexican fintech Klar aims to obtain a banking license through acquisition, pending regulatory review of its purchase of Banorte’s digital unit Bineo. With this new status, Plata now joins UK-based Revolut among digital banks with full authorisation in Mexico.
Revolut’s Progress in Mexico
Last month, Revolut started full banking operations in Mexico after concluding its beta testing phase. The official launch of Revolut Bank S.A Institución de Banca Múltiple marks the company’s first bank established outside of Europe and extends its presence to a total of 40 countries.
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