Introduction to Openbank and its Mexican Operations
Openbank, the digital banking arm of Spanish financial institution Santander, has rapidly gained prominence in Mexico’s neobanking sector. In less than a year of operation, Openbank has become the leading entity in deposit capture among its competitors.
Impressive Growth in Deposit Capture
By the end of September, Openbank had amassed a total of 7,600 million pesos (approximately 358 million euros), nearly tripling the figures reported in late July, according to data from Mexico’s Banco de México.
The growth trajectory of Openbank is evident, with deposit volumes increasing from 18.1 million euros in March to 48.8 million euros by the end of May, and further rising to 249.2 million euros in August.
Comparison with Other Neobanks
Although Openbank’s deposit capture lags behind Nubank, the leading neobank in Mexico with over 5,228 million euros, it is still competitive. Nubank has experienced a decline in its deposit portfolio for three consecutive months.
Openbank’s deposit capture significantly surpasses that of Pago, the second-ranked neobank with 1,461 million euros in deposits. Klar and Stori, the fourth and fifth-ranked neobanks with 390 million euros and 379 million euros in deposits respectively, have shown limited growth or even declines in their deposit volumes.
Openbank’s Rising User Base
Openbank’s success extends beyond deposit capture, as it has also gained a substantial user base. The digital bank now boasts over 500,000 users, marking a 66.6% increase since September 2nd when it had 300,000 users.
Unsatisfied with its current achievements, Openbank aims to sustain and accelerate its business and customer acquisition. The bank is reportedly developing new products to expand its offerings and present a comprehensive package.
Upcoming Competition
The Mexican fintech market is set to become even more competitive with the arrival of Revolut, which has just initiated beta testing and plans to launch a full-fledged offering, including deposit services, in the coming months.
Key Questions and Answers
- Who is Openbank? Openbank is the digital banking division of Spanish financial institution Santander.
- What is its significance in Mexico? Openbank has quickly become the leading entity in deposit capture among neobanks in Mexico.
- How much has it grown? Openbank’s deposit capture has increased from 18.1 million euros in March to 249.2 million euros in August.
- How does it compare to other neobanks? While Openbank lags behind Nubank in terms of deposit volume, it outperforms Pago and is competitive with Klar and Stori.
- What is Openbank’s user base? Openbank has amassed over 500,000 users, a 66.6% increase since September.
- What are Openbank’s future plans? Openbank aims to continue expanding its business and customer base by launching new products.
- What is Revolut’s role? Revolut, a new entrant in the Mexican fintech market, plans to launch a comprehensive offering including deposit services in the near future.
