Revolut Secures Banking Licence in Mexico
The UK-based neobank, Revolut, has received final authorisation from the National Banking and Securities Commission (CNBV) of Mexico to commence operations as a multiple banking institution. This approval marks a significant milestone for Revolut, as it is the first time an independent digital bank has completed the full licensing and approval process from scratch in the country.
Revolut’s Expansion in Mexico
Revolut is now preparing to introduce its banking services to Mexican consumers who have pre-registered. The attainment of a full banking licence allows the firm to provide a range of financial services in Mexico.
One notable advantage of this licence is the security assurance it provides to customers. All customer deposits with Revolut will be insured by the Instituto para la Protección al Ahorro (IPAB) for up to approximately 3.4 million pesos.
Revolut’s Local Investments and Recruitment
As part of its expansion strategy in the Mexican market, Revolut plans to invest in the region and recruit local talent. Juan Miguel Guerra, the CEO of Revolut Bank, Institución de Banca Múltiple – Revolut’s bank in Mexico, expressed pride in the team and the bank they have built in Mexico.
He stated: “We are very grateful to the authorities for this vote of confidence and their commitment to fostering competition in the industry. We are confident that our offering will benefit millions of people across the country. We have tailored our world-class banking app to serve customers across Mexico, while at home or abroad, and this is just the beginning. We will continue to innovate and launch more products to serve all our customers’ needs in one place, so stay tuned!”
Revolut’s Growth in the Americas
This expansion into Mexico is a part of Revolut’s larger growth strategy in the Americas. The neobank already has operations in the US and Brazil and is in the process of acquiring an Argentine bank.
However, Revolut’s global expansion has not been without challenges. Recently, it experienced delays in obtaining a full UK banking licence due to regulatory concerns about its risk management capabilities. The Bank of England requested commitments from Revolut to strengthen its risk management infrastructure to align with its international growth objectives.
Despite these challenges, Revolut continues to make strides in expanding its global footprint. Earlier this month, the neobank received approval from Colombia’s Superintendencia Financiera de Colombia (SFC) to establish banking operations, with plans to launch digital banking services by 2026.
Revolut’s expansion in Mexico and other parts of the Americas highlights its commitment to providing accessible digital banking services on a global scale. As the firm continues to grow and innovate, it is poised to redefine the banking experience for customers worldwide.
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