Introduction to Revolut and its Mexican Ambitions
Revolut, a British financial technology giant, has announced its intention to compete with major Mexican banks and become one of the top five banking institutions in the country by user count within five years. The company recently received authorization to begin operations as a bank in Mexico, starting with a beta phase and eventually expanding on a large scale.
Revolut’s Leadership in Mexico
Juan Miguel Guerra, Revolut’s General Manager for Mexico, expressed the company’s determination to compete with established Mexican banks, stating, “Yes, eventually we want to compete with them, and we’re going for it.” In an interview with El Economista, Guerra emphasized the need to compete “tú por tú” with Mexican banking giants, much like Revolut’s success in Europe where it also holds a banking license.
Revolut’s Global Presence and Mexican Aspirations
With a presence in around 40 countries and nearly 70 million users globally, Revolut aims to leverage its success to capture a significant market share in Mexico. The company secured the first banking license outside of Europe, positioning itself as a formidable competitor in the Mexican financial landscape.
Setting Ambitious Goals in Mexico
Guerra highlighted that Revolut aims to acquire one million customers within the first 12 months of operation. However, he stressed that user enthusiasm and product love are more important than mere numbers. “We want to be the most loved bank in the country; I don’t know many banks that are loved,” he said.
“We Have Advantages, but So Do They”
Guerra acknowledged that both new entrants like Revolut and established banks possess unique advantages. He praised the success of existing Mexican banks, noting their vision and transformation long before Revolut’s emergence. “These banks have been very successful in this country, and some have been visionaries and transformed themselves long before we were on the map,” he said.
“The Digital Banking World Cup is Coming”
Guerra likened the competitive Mexican banking landscape to an upcoming “World Cup of Digital Banking,” where successful traditional banks and new entrants, primarily from abroad, will vie for dominance. “From our European success, we have great chances, but we mustn’t be arrogant or complacent and always listen to the user,” he emphasized.
Types of Players in the Digital Banking World Cup
Guerra identified three types of players in this digital banking world cup: traditional banks with a comprehensive product range but high-cost structures; fintech traditionalists with limited product offerings but lean cost structures; and digital fintechs like Revolut, offering a full product range with low-cost structures.
Revolut’s Offering in Mexico
Once operational, Revolut Mexico will provide a diverse range of products and services, including a virtual currency exchange with favorable conditions, low-cost money transfers to the US and other countries, a benefits-packed debit account, and eventually, a credit card. The company also plans to cater to small and medium-sized enterprises (SMEs).
Registration Process
Interested users can register through Revolut’s website or app and join the waiting list, which will be addressed shortly. As of now, there are 200,000 registered users.
Four-Year Journey to Mexican Banking License
Revolut began its Mexican establishment process in 2021, initially targeting an Institución de Fondos de Pago Electrónicos (IFPE) acquisition. When that didn’t materialize, the company pursued a banking license instead. This process took four years, culminating in recent authorization from the National Banking and Securities Commission (CNBV) to commence bank operations.
Mexico’s Unique Position in Financial Services
Martín Masola, Revolut Bank México’s Finance Director, highlighted Mexico’s unique position as a large country with interesting financial flows due to its proximity to the US, remittance corridor status, and appealing demographic trends. Mexico also boasts a relatively high level of development considering its emerging PIB, investment grade, and macro stability. Moreover, banking and credit penetration remain low, presenting an opportunity for growth.
