Introduction to Banco Azteca
Banco Azteca, with 23 years of operation and nearly 33 million clients, primarily from the lower-income segment, has established itself as a “figital” bank. Its president, Alejandro Valenzuela del Río, emphasizes their unique offering and the challenge of growing with their clients.
Banco Azteca’s Unique Value Proposition
While digital banking allows access 24/7 through mobile apps, Banco Azteca’s physical network remains open for 12 hours a day, seven days a week, a differentiating factor that no competitor has replicated, according to Valenzuela del Río.
Competition from Fintech Companies
Valenzuela del Río acknowledges fintech companies as significant competitors, pushing Banco Azteca to continuously improve and maintain close relationships with their clients.
Impressive Growth and Future Outlook
In 2024, Banco Azteca experienced a remarkable 79% growth in profitability. Despite current challenges, including external factors like tariff adjustments and internal changes in the country’s trade policy, Valenzuela del Río remains optimistic about 2025.
“Figital” Banking Model
Banco Azteca offers both digital and physical options, positioning itself as a “figital” bank. The president highlights the importance of human contact for many clients, which Banco Azteca facilitates through its widespread physical presence.
Targeting the Base of the Pyramid
Since its inception, Banco Azteca has focused on serving the lower-income segment, an area traditional banks often overlook. By atomizing larger sums into smaller individual loans, Banco Azteca has successfully bancarized approximately 33 million Mexicans in a country where financial inclusion remains a challenge.
Social Impact and Financial Education
Valenzuela del Río stresses the bank’s social responsibility, including financial education initiatives. He notes that many developing countries, including Mexico, do not prioritize financial literacy in their education systems.
Credit Management and Mipymes
Banco Azteca’s delinquency rate is 5%, higher than the industry average. However, Valenzuela del Río explains that this is reasonable given their targeted clientele and diligent credit monitoring. Although they don’t have a specific Mipyme financing program, there’s an overlap between individual accounts and small businesses.
Growing with the Client
Valenzuela del Río emphasizes the importance of accompanying clients through their professional and personal development. By understanding each client’s unique needs and offering tailored financial solutions, Banco Azteca aims to be a long-term partner in their clients’ success.
Key Questions and Answers
- What makes Banco Azteca unique? Banco Azteca offers a “figital” model, combining physical and digital banking options to serve the base of the pyramid.
- Why is Banco Azteca’s physical presence important? Many clients still prefer human contact, which Banco Azteca facilitates through its extensive branch network.
- How does Banco Azteca address financial inclusion? By atomizing larger loans into smaller individual amounts, Banco Azteca has successfully bancarized millions of previously underserved Mexicans.
- What is Banco Azteca’s approach to credit management? Despite a higher delinquency rate, Banco Azteca maintains diligent credit monitoring and tailored solutions for its clients.
- How does Banco Azteca support its clients’ growth? By understanding and addressing each client’s unique needs, Banco Azteca aims to be a long-term partner in their clients’ professional and personal development.
