Mexico-based Banorte has announced that it intends to launch Banco Bineo, its digital bank product, in January 2024. The announcement follows Banorte’s approval received from Mexico’s National Banking and Securities Commission, with the bank planning to introduce Banco Bineo at the beginning of 2024.

The bank highlighted its commitment to improving the financial landscape in the region, with the development of the digital bank supporting its expansion strategy. Initially, Banorte aimed to launch the digital bank by the end of 2023, with the financial institution waiting for the last phase of approvals from the authorities. Banco Bineo was intended to be a fully digital bank, with it focusing on providing several financial services, including deposits, loans, payments, and transfers. At the end of March 2023, the bank’s representatives stated that Banco Bineo could generate 5% to 7% of its income in less than five years.

At that time, the digital bank already had assigned 200 staff members, with the potential to increase to 600 and 800 after its launch. By introducing the digital bank, Banorte planned to compete with Brazilian digital bank Nubank, which expanded in Mexico and signed up 3.2 million customers. Furthermore, the digital bank intended to add three million customers as it learnt from its experience providing credit card applications via mobile phones.

Latin America’s banking landscape In recent years, digital banking users have been on the rise, with India being estimated to have the highest number of customers in the world in 2022, followed by the US. The two regions had a signification number of digital banking users, with a substantial gap between them and other countries around the world. Considering this, digital banks grew in popularity among Latin Americans, with the development being accelerated by the COVID-19 pandemic.

In 2022, there were approximately 400 digital banks globally, with them continuing to expand throughout 2023. This progression is evident in Latin America, with several fintechs launching their services to customers. Furthermore, the region saw a growth in competition, consolidation, and technological innovation, which led to increased efficiency and profitability in the sector. More countries adopted online and mobile banking, with the number of fintech users reaching 415 million in 2022, underlining the shift towards digital banking services.

As per Statista’s report, Mexico underwent a process of deregulation and competition, which created a more dynamic and diverse market, as well as the growing profitability of banking institutions. .