BanCoppel to Invest US$500 million Amid Digital Transformation
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BanCoppel to Invest US$500 million Amid Digital Transformation

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Antonio Gozain By Antonio Gozain | Senior Journalist and Industry Analyst - Tue, 03/29/2022 - 17:32

BanCoppel will invest over MX$10 billion (US$500 million) over the next 4 years as part of its digital transformation strategy, aiming to catch up with the new needs of its market segment.

The technological transformation is ongoing and BanCoppel must be involved to be at the forefront and have the world-class products that people need, said to El Sol de México Carlos López-Moctezuma, CEO, BanCoppel. “We serve the mass segment, which used to be a less digitized sector than other segments, but now is fully digitized. We already see a much more intensive use in terms of banking applications or transfer operations,” he added.

BanCoppel opened in 2007 to cover those who would normally be excluded from mainstream banking. The bank has offered loans, credit and debit cards over the past 15 years. By 2018, BanCoppel had already attracted over 30 million clients, issued more than 4.5 million credit cards and granted almost 700,000 personal loans, as reported by MBN. The bank has more than 16 percent market share in remittance flows, which ranks BanCoppel as the second-largest remittance payer in Mexico, according to the Inter-American Development Bank.

Remittances surpassed the record-breaking amount of US$5 billion in 2021, representing a 27.1 percent increase compared to 2020. Digital remittances have also increased over the past years, said López-Moctezuma: “There is progress in customer behavior and preferences, which forces us to also launch new products and innovate gradually.”

Currently, BanCoppel offers investment products starting at MX$5,000 (US$250), as well as digital and personal financing. By the end of 2021, the bank's portfolio amounted to MX$32.8 billion (US$1.6 billion), which represented an annual increase of 28.74 percent, according to the National Banking and Securities Commission (CNBV).

The US$500 million investment will be directed exclusively to technological tools, from cybersecurity to cloud solutions and more efficient systems, said to El Economista Julio Carranza, Board of Directors Vice President, BanCoppel. Digital banking has become an essential channel and while the current effort to have all attention means open implies higher operational costs, this will change over time as most channels become complementary, he added: "The most important transactions today are done through the mobile phone, which is the easiest channel.”

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