Mexico’s Low Bank Inclusion Offers Growth, Santander Says

Low financial inclusion in Mexico is creating significant growth opportunities for banks as millions of consumers remain outside the formal financial system, according to Felipe García of Santander México. Traditional lenders and fintech firms are increasingly converging through digital platforms, intensifying competition while expanding access to financial services across the country’s banking sector. The shift is reshaping competition among major institutions in Mexico’s “G-7” banking group — including BBVA México, Banorte, Inbursa, Banamex, Scotiabank and HSBC — while opening space for fintech entrants to expand digital banking and credit access under responsible lending frameworks.

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Low levels of financial inclusion in Mexico continue to represent one of the largest growth opportunities for banks operating in the country, according to Felipe García Ascencio, CEO, Santander México. Speaking during the 89th Banking Convention, García said a significant share of Mexico’s population remains outside the formal financial system, creating substantial room for banks to expand their customer base.

For García, the key challenge lies in increasing access to financial services while ensuring responsible lending practices and improving financial education among new users.

In response, Santander México has structured its strategy around three banking licenses, including its newest fully digital banking platform, designed to reach different customer segments through distinct operating models. García emphasized that the goal is not to distribute the same number of customers across platforms but to broaden overall financial inclusion.

“Financial inclusion is still very low in the Mexican market. That creates opportunities for all banks to grow by bringing more people into the formal financial system,” García said.

However, he cautioned that aggressive expansion strategies among new financial market entrants could pose risks if credit products are offered without a clear understanding of customers’ financial habits. According to García, expanding access to financial services must be accompanied by responsible onboarding processes and financial education.

“If we start giving cards to everyone without understanding their habits, many of them will fall into default, making it much harder for them to access credit in the future,” he said. “It is very important to do this responsibly.”

To address this issue, Santander México has implemented programs aimed at ensuring that new customers understand their financial limits and use credit products responsibly. García said these measures are intended to promote sustainable financial inclusion while maintaining the quality of the bank’s credit portfolio.

At the same time, Mexico’s banking sector is undergoing a broader digital transformation, reshaping competition between traditional banks and fintech companies. García noted that established banks are investing heavily in digital infrastructure, while many fintech firms are gradually moving toward regulated banking models.

This trend is leading both sectors toward increasingly similar operating structures and competitive dynamics. “Competition is very strong, but it is healthy,” García said. “We are all focusing more on improving the customer experience—making services easier so people can complete transactions through the application without needing to visit branches or contact service centers.”

Santander México competes with both digital-first financial institutions and long-established banks in the country. García highlighted ongoing competition with other major institutions in Mexico’s “G-7” banking group, which includes BBVA Mexico, Banorte, Santander, Inbursa, Banamex, Scotiabank and HSBC.

Despite the competitive landscape, García said Santander remains committed to expanding its presence in Mexico through continued investment, talent recruitment and growth across its business lines. “We are investing, bringing in talent and continuing to expand. We want to keep growing in Mexico and remain here for many years,” he said.

While García acknowledged that some investor uncertainty persists regarding Mexico’s trade relationship with the United States—particularly ahead of the upcoming review of the United States–Mexico–Canada Agreement (USMCA)—he said confidence is expected to improve as regulatory clarity emerges. Santander Group continues to view Mexico as a strategic long-term market, he added.

Digital Payments Initiative Targets MSMEs

Reflecting this long-term commitment, Santander is leading an initiative promoted by Mexico’s Ministry of Economy (SE) to expand digital payment infrastructure among micro, small and medium-sized enterprises (MSMEs).

In collaboration with Visa and BBVA México, Santander will launch the “Grow Your MSMEs with Digital Payments” program across 10 states, including cities that will host matches during the 2026 FIFA World Cup. The initiative is expected to continue throughout the current federal administration.

One of the program’s objectives is to help ensure a secure and efficient payment environment during the tournament, which is projected to generate around US$3 billion in economic activity in Mexico.

According to data from the 2023 National Survey of Business Financing, only 52% of MSMEs currently accept card payments. Among those businesses:

• 98% cited customer demand as the primary reason

• 70% identified increased sales potential

• 62% reported improved sales tracking and accounting

The initiative aims to reduce Mexico’s gap in digital payment adoption compared with other Latin American economies. At the program’s launch, Minister of Economy Marcelo Ebrard noted that approximately 3.2 million MSMEs in Mexico still lack the infrastructure needed to accept digital payments, limiting their access to broader financial services.