Security, Investment Are Top Priorities for Mexicans: Openbank

Q: What have been the main milestones that Openbank has reached in its journey to become a regulated institution in Mexico?

A: Last year, we were audited by the National Banking and Securities Commission (CNBV), which authorized us to begin operations in October. The first few months felt like a stabilization phase, as we were open for business but did not make any public announcements. In February, Ana Botín, President, Santander Group, held a press conference to announce two major developments: a US$2.5 billion (MX$51 billion) investment across the Santander Group in Mexico over the next three years and the official public launch of Openbank.

Despite minimal communication before the official launch, the interest was significant, with nearly 30,000 people signing up to the waiting list. Since the February launch, we have gained about 26,000 clients within the first few weeks. 

Q: What makes Openbank’s banking model attractive for new clients?

A: Our digital banking model stands out in several ways. First, we launched with a savings account, a simplified N2 account, a N4 Visa card with interest rates, bill payment functionality, a debit card, an embedded cashback credit card, and purchase financing. No other digital bank has introduced such a comprehensive offering at launch.

Second, we have a banking license, which provides deposit insurance through IPAB for up to M$3.3 million. This is a valuable security feature that Mexican consumers greatly appreciate. We also leverage the strength, solvency, and infrastructure of Santander, both globally and in Mexico. Our clients have immediate access to over 10,000 Santander ATMs in Mexico for withdrawals, free of charge. Moreover, Openbank operates in six countries: Portugal, Spain, the Netherlands, Germany, the United States, and now Mexico. This global presence allows us to scale and enhance our technology at a much faster rate than any other digital bank.

Q: How does Openbank fit into Santander’s US$2.5 billion investment plan? 

A: First, obtaining our banking license and launching required us to meet regulatory minimum capital requirements, which we have successfully fulfilled. That was a crucial milestone. Our growth strategy will now use multiple channels, including social media and streaming, while engaging in both online and offline marketing efforts to increase brand awareness. Although we benefit from the strong reputation of Santander, Openbank is still relatively unknown to the average Mexican consumer. Therefore, we have a substantial marketing budget allocated to drive our expansion in Mexico.

Our goal is to become one of the top three digital banking players in Mexico. But Openbank’s expansion is not just about Mexico; we have a global vision and Mexico plays a fundamental role in this strategy. 

Q: What characteristics make Mexico an attractive market for digital banking?

A: Three main factors make Mexico an attractive and competitive market: a population of nearly 130 million people, high smartphone and internet penetration among adults, and low levels of financial inclusion and credit access compared to other Latin American countries and global markets. This combination of a large population, widespread connectivity, and limited financial access makes Mexico highly attractive for digital banking. As a result, both local and international players are investing in the country.

Security remains a top priority for Mexican consumers. Many value the fact that we have a banking license and provide deposit insurance. Younger consumers, in particular, place high importance on a seamless digital experience that includes a fast and intuitive onboarding process, simple payments, and easy access to transaction history.

Another emerging trend is the growing demand for interest-bearing accounts. Previously, this was not a major priority for Mexican consumers, but with increased competition, it has become a standard expectation. We believe this shift will redefine the landscape in Mexico.

Q: What role will Openbank play in advancing financial inclusion in Mexico?

A: First, we will focus on basic financial education. Many people do not fully understand concepts such as interest rates — how much they pay on a loan versus how much they earn on deposits. This fundamental knowledge is essential, and we believe banks have a responsibility to contribute by educating consumers. For example, explaining why paying off a credit card in full is better than carrying a balance, or how structured payment plans can help manage cash flow efficiently, preventing defaults.

The second aspect concerns the financial ecosystem, including banks, regulators, and payment processors, and their role in driving digital payments. A significant portion of Mexicans rely on cash transactions, which limits their ability to generate financial history and access credit.  The goal is not just to offer a banking alternative but to actively encourage long-term financial participation, ensuring that customers do not just use Openbank as a temporary bridge but rather fully integrate into the digital financial ecosystem.

Banks, fintechs, payment processors, and regulators need to work collectively to encourage safer and more convenient digital transactions. Technologies to facilitate this process already exist. Biometric authentication and palm recognition, for example, are widely used in other markets like China. The challenge is implementing them effectively in Mexico and ensuring widespread adoption.

Q: What key milestones does Openbank aim to achieve this year?

A: We have ambitions, a budget, and capital allocated for growth. We aspire to be one of the leading digital players. In the future, we anticipate the coexistence of both incumbent and digital banks. While the exact market share of each is uncertain, the trend indicates increasing adoption of digital banking, particularly among younger generations.

For us, success is defined by acquiring customers who truly engage with and remain loyal to our platform. We aim for strong customer satisfaction, ensuring they evaluate us positively and find solutions tailored to their needs. In addition, we plan to attract thousands of new customers through various channels.

Openbank is a fully digital bank backed by Santander Group. It has an international presence and aims to be a more flexible and agile option than traditional banking.