- Revolut launches its first fully licensed digital bank outside Europe in Mexico.
- Revolut obtained a full banking license last year from Mexico’s main financial regulators.
- The company started its Mexico bank with $100+ million, more than twice what was required.
British fintech giant Revolut officially started operating as a full digital bank in Mexico. This is the first time it has launched a fully licensed bank outside of Europe, marking a big move in its plan to expand globally.
The new institution (Revolut Bank S.A., Institución de Banca Múltiple) obtained a full banking license last year from Mexico’s National Banking and Securities Commission (CNBV) and the Bank of Mexico. With that, Revolut completed a lengthy approval process needed to provide standard banking services in the country.
Revolut started its Mexico bank with over $100 million, which is more than twice what regulators required. It also received positive initial credit scores, showing it is financially strong and ready to stay in the market for the long term.
As a fully licensed bank, Revolut can now offer all standard banking services directly on its app. This includes:
- Savings and checking accounts, including joint and youth accounts
- Debit and credit cards
- International money transfers and multi-currency wallets
- Free remittances between the U.S. and Mexico are expected to save customers billions in fees every year
For remittances (given the large volumes of US to Mexico transfers each year), by cutting out the usual 5% fee, users could keep up to $3 billion more annually.
Revolut is also steadily adding new features like custom savings accounts and accounts for children, with plans to offer business banking and more complex loans by 2027.
Competition with the Local Banks
The launch heats up the race against big players in Mexico’s financial sector, including Nubank, Stori, Mercado Pago, and traditional incumbents. The battle is largely centered around who offers the best interest rates on savings or the cheapest international transfers, among other services and features.
To grab customers fast, Revolut is offering perks like a 15% introductory rate on savings (with some limits), directly challenging what other banks charge.
With Mexico, Revolut is active in about 40 countries, aiming to get bank licenses in Peru and expand services in Brazil and Colombia.
It also seems that this announcement is part of Revolut’s bigger strategy to move from being just a fintech app to becoming a fully licensed bank in major markets.
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Source: https://coinedition.com/revolut-debuts-in-mexico-the-first-independent-digital-bank-is-here/
