Introduction to Manuel Rivero and Hey Banco
Manuel Rivero, the General Director of Hey Banco—the digital arm of Banregio preparing for independent bank operations—believes that having a wide range of products to cater to clients throughout their lives is far more valuable than offering just one product.
Why Product Diversity Matters
Rivero argues that institutions offering only one product lack the ability to cross-sell other services and show insufficient empathy. He points out that low penetration rates in financial services and products are a significant issue, especially among lower- to middle-income socioeconomic groups.
Hey Banco’s Product Offerings
Under Rivero’s leadership, Hey Banco has expanded its product lineup to include accounts, loans, insurance, investments, stocks, and payment methods. Additionally, they offer financial education programs to more than half a million clients.
Lack of Empathy and Financial Inclusion
Rivero highlights the need for greater support in users’ decision-making processes due to insufficient financial education. He notes that low usage rates of credit products, such as auto and home loans for small businesses, indicate a significant gap in financial inclusion.
Preparing for Independent Bank Operations
Hey Banco has received authorization from Mexico’s National Banking and Securities Commission (CNBV) to operate as an independent bank. However, they still need to fulfill additional requirements before launching fully independently.
- Expected Timeline: Rivero anticipates this transition to occur within the next few months, between June and July.
- Current Status: They are currently in the process of separating clients from Banregio.
- Comparison with Other Digital Banks: Once operational, Hey Banco will join other digital banks spun off from traditional institutions, such as Bineo from Banorte and Openbank from Santander.
Current Financial Standing
By the end of 2024, Hey Banco had amassed over 500,000 clients, with approximately 12.5 billion pesos in deposits and 9 billion pesos in loans. They also held around 1.8 billion pesos in capital.
Hey Banco’s Readiness
Rivero confirms that Hey Banco is fully prepared to operate independently as a bank, having secured the necessary license and initiated the client separation process. They await final approval from the regulatory authority to finalize the transition.
