Multired ATM Network Saves Cardholders MX$767 Million in 2023

A network of six major banks in Mexico, including HSBC, Scotiabank, BanBajío, Inbursa, Banregio, and Mifel, has facilitated seamless ATM transactions for their combined 14 million clients in 2023. This alliance, known as Multired, enables customers to check balances and withdraw cash from any participating banks' ATMs without incurring fees.

Since its inception, Multired has generated substantial savings for users, amounting to MX$767.5 million within the year. The network spans over 9,400 shared ATMs, allowing customers to conduct over 37.4 million balance inquiries and cash withdrawals between January and November 2023, all free of charge. 

"That is the objective of sharing infrastructure in favor of our customers, bringing financial services closer, and making them more accessible," notes a press release. This aligns with the core principles of open banking or open finance, which has been under continuous discussion in Mexico. Experts have emphasized the importance of updating regulations to allow Mexican institutions, both traditional and digital, to access user information to offer improved products and services and prevent the rise of fraud. 

Multired transactions accounted for approximately 23% of all interbank ATM transactions nationwide during the same period in 2023. Users conducted over 37.4 million balance inquiries and cash withdrawals, according to data provided by HSBC and Scotiabank.

The banks emphasized Multired's significance as Mexico's premier ATM-sharing alliance, representing entities that collectively hold 21% of the country's banking assets and 26% of the total credit portfolio, based on data from the National Banking and Securities Commission (CNBV) as of September 2023.

Recent reports from Mexico’s Central Bank (Banxico) highlight the effectiveness of such alliances in reducing ATM transaction fees for customers. Conventions established under Multired and similar agreements have led to over 95% of transactions being fee-free, with an average cost per transaction falling below 50 cents. 

Since the inception of the first agreement in 2014 until October 2023, these collaborations have yielded estimated savings exceeding MX$767.5 million for cardholders. Currently, Banxico has authorized 24 active alliances.

Digital financial services, along with developing technologies, like AI and data analytics, are poised to close the gap in financial inclusion in Mexico. "The AI revolution offers two significant possibilities for companies in general. On one hand, it is an enabling technology that automates and enhances processes of all kinds. On the other hand, it provides powerful tools for mapping the most crucial part of any industry: the customer,” says Alan Ramírez Flores, CEO, Coperva.