Santander has launched its digital bank asset, Openbank, in Mexico, coming just a month after the platform debuted in the US.
The Spanish multinational bank launched both the Openbank website and app in the country this week, and expects to build up a strong presence and customer base.
In a statement, the bank cited its debt and savings products, lack of minimum balance or hidden fees, and technology as key products. The launch is indicative of both Santander’s growing ambitions in North America as well as the importance of digital banking platforms.
Matías Núñez, CEO of Openbank Mexico, remarked: “Openbank Mexico is now a reality for all Mexicans who want to manage their finances quickly, easily, 100% digitally and with the security and solvency of Santander.
“Our proposition combines one of the most advanced digital banking experiences with the best fintech, not to mention the trust and backing of a large international financial group. We’re certain that our customers in Mexico will really embrace it.”
Openbank is one of the world’s oldest direct banks, functioning as an internet-only banking option since 1995. The firm was active in Spain for much of its history but began expanding in the late 2010s with launches in Germany, the Netherlands and Portugal.
Transatlantic expansion began this year with launch in the US in late October, with the firm anticipating deposits from US customers providing funds for its auto financing business, whilst also capitalising on the growth of digital banking services in the US.
In Mexico, the launch showcases the growing demand for digital banking in this nation, home to the world’s 10th largest population and 13th largest economy by GDP. Like other Latin American nations, alternative payment methods (APMs), fintechs and neobanks are finding success in Mexico.
Revolut, the UK-based fintech which is now Europe’s most valuable, secured a Mexico banking licence before securing one in its native country. Though Openbank is a direct bank and not a neobank/challenger bank, its North American expansion efforts are still nonetheless indicative of changing trends and preferences in these countries.
Petri Nikkila, Global CEO of Openbank, said: “Openbank’s banking model is a key component of Santander’s digital transformation. Mexico is a market with great potential for a state-of-the-art digital bank like Openbank.
“We hope to become a benchmark for Mexican customers who want competitive products through a first-class experience.”
