Introduction to Sociedades Financieras Populares (Sofipos)
Since 2011, there have been significant transformations in Mexico’s financial sector, particularly within Sociedades Financieras Populares (Sofipos). These entities have experienced mergers and acquisitions, as well as the integration of traditional institutions with fully digital operating entities. Notable examples include Nu, a Brazilian origin firm recently authorized to operate as a bank, and the acquisition of a financiera by Nu.
Recent Sofipo Application Trends
According to information obtained through a transparency request by El Economista, the National Banking and Securities Commission (CNBV) has received 11 applications to establish a Sofipo since 2022. Of these, eight are currently under review by the CNBV, two have been withdrawn by the applicants, and one has been authorized.
Comparatively, by May 2024, ten applications had been received for establishing a Sofipo. At that time, six were under evaluation and processing by the CNBV.
Among the currently 11 applications, only Financiera Haai Capital has been authorized so far. It submitted its application on February 15, 2022, and received approval in July 2023.
In 2022 and 2023, two applications were registered each year. However, in 2024, the number of submissions increased significantly to six, the highest recorded in the analyzed period.
Some companies that have publicly expressed their intention to establish themselves as Sofipos include Baubab, a financing specialist, and Yuhu, a Mexican technology firm. Ditobanx, a Sociedad Anónima operating virtual assets, also announced their Sofipo application process in 2024.
Sofipos Transformations and Recent Mergers
In recent years, the Sofipos sector has undergone significant transformations, including mergers and acquisitions of traditional entities by fully digital operating institutions. A prominent example is Nu’s acquisition of a financiera, similar to its recent authorization to operate as a bank.
In 2023, Klar acquired Servicios Financieros Alternativos (Sefia) to launch savings products, Fondeadora acquired Apoyo Múltiple and formed Fondeo Technologies, while Stori purchased MasCaja to expand its loan and deposit offerings.
Revocations and Challenges
Current Status of Sofipos
Currently, 34 Sofipos are operational, with one still in the authorization phase without starting operations. However, the ecosystem has been marked by license revocations, primarily due to non-compliance with the Nivel de Capitalización (Nicap).
Notable cases include Operadora de Recursos Reforma, Caja de la Sierra Gorda, and Auxi. Since 2022, the CNBV has revoked authorization for seven Sofipos.
Among the entities whose licenses were revoked are Comercializadora Financiera de Automotores (Cofia), Financiera Planfía, Crédito Popular Nacional, and Impulso para el Desarrollo de México.
Currently, Sofipo CAME, which merged with Te Creemos in 2023, faces issues with its savers and employees. This situation has caused concern among its clients, though no official statement has been issued by the authority.
Key Questions and Answers
- What are Sociedades Financieras Populares (Sofipos)? Sofipos are financial entities in Mexico that provide credit, savings, and other financial services to underserved populations.
- Why are there more Sofipo applications since 2022? The increasing trend in Sofipo applications reflects the growing interest and opportunities within Mexico’s evolving financial sector, driven by digital transformation and consolidation.
- What are some notable Sofipo mergers and acquisitions? Nu’s acquisition of a financiera, Klar’s purchase of Sefia, Fondeadora’s acquisition of Apoyo Múltiple, and Stori’s purchase of MasCaja are examples of significant Sofipo mergers and acquisitions.
- Why have some Sofipo licenses been revoked? Licenses have been revoked primarily due to non-compliance with the Nivel de Capitalización (Nicap) requirements.
- What challenges is Sofipo CAME currently facing? Sofipo CAME, after merging with Te Creemos in 2023, is dealing with issues involving savers and employees, causing concern among its clients.
