What Is the Status of Banking Licenses in Mexico?

With the rise of fintech companies and neobanks over the past decade, the Mexican financial sector has shifted towards a more flexible and scalable model. Many companies initially began operating in Mexico as Popular Financial Societies (SOFIPOS), but are now in the process of becoming banks to expand their services. 

Experts attribute this trend to the lack of clear regulation for digital financial products and services in the Mexican market, despite the country’s pioneering Fintech Law in 2018. In just over 10 years, Mexican regulatory bodies, including the National Banking and Securities Commission (CNBV) and Mexico’s Central Bank (Banxico), have authorized 20 new banks.

Below is an overview of the licensing status and recent developments concerning fintechs and neobanks in Mexico:

• Plata Card: A fintech specializing in credit cards, Plata Card received approval from the CNBV to establish itself as a fully licensed multiple-purpose banking institution. The company plans to launch banking services by late 2025, following a significant investment round that increased its active user base to over 300,000.
   

• Revolut: The British neobank secured a banking license in Mexico in April of 2024 to further expand into the Latin American market. Revolut aims to leverage this license to offer a comprehensive suite of financial services, including remittance solutions. The bank has amassed over 35 million customers across 38 countries and, in 2023, was the most downloaded finance app in 9 countries and ranked among the top three financial apps in over 15 European countries.

• Mercado Pago: In September 2024, the fintech arm of Mercado Libre applied for a banking license in Mexico with the CNBV. This move is designed to expand its financial offerings, enabling services such as savings and checking accounts, certificates of deposit, commercial loans, and mortgages. With the second largest user base in the country, Mercado Pago aims to become the largest digital bank in Mexico.
   

• Nu Mexico: A subsidiary of Brazilian Nubank, Nu Mexico has initiated the licensing process with the CNBV to operate as a full-fledged bank in Mexico. With almost 8 million users in the county, the company has not issued an update on the status of its license.
   

The entry of neobanks and fintechs has intensified competition within Mexico's financial sector. Traditional banks are responding by developing their own digital platforms and services. Despite the progressive regulatory environment, challenges remain. The implementation of certain aspects of the Fintech Law, such as open banking standards, has faced delays.