Revolut is open for business in Mexico after receiving authorisation from the Bank of Mexico and National Banking and Securities Commission (CNBV) to operate in the country.
The digital bank will operate as a Multiple Banking Institution, enabling it to offer its range of financial services, such as current accounts and branded debit cards, to retail customers.
Revolut stated this is a “pivotal approval” as it marks one of the final regulatory stops before “opening the bank’s doors to the public”, with some Mexican nationals having signed up to the wait list back in November 2024.
“We are exceptionally proud of our team and the bank we have built here in Mexico,” said Juan Miguel Guerra, CEO of Revolut Bank S.A., Institución de Banca Múltiple – Revolut’s bank in Mexico.
“We are very grateful to the authorities for this vote of confidence and their commitment to fostering competition in the industry, and we are confident that our offering will benefit of millions of people across the country.” “We have tailored our world-class banking app to serve customers across Mexico, while at home or abroad, and this is just the beginning. We will continue to innovate and launch more products to serve all our customers’ needs in one place, so stay tuned.”
Revolut’s regulatory roadmap
Revolut revealed it has now become the first independent digital bank in Mexico to apply and successfully complete the full licensing approval process “from scratch”.
To become a regulated bank in Mexico, Revolut had to demonstrate specific capital requirements and fulfill the two-stage application process with the CNBV. A minimum of $36m in reserves is required, while also complying with the CNBV’s relevant anti-money laundering and risk management regulations.
The UK-based digital bank was also required to establish a separate banking company, Institución de Banca Múltiple, while also required to gain a “favourable opinion” from the Bank of Mexico to complete the first stage.
The second stage will be complete once the CNBV makes its final decision on when to allow Revolut to begin onboarding public customers.
Revolut intends to offer current accounts with enhanced customer protection, with deposits insured by the Instituto para la Protección al Ahorro (IPAB) for up to $184,000 (3.4m MXN).
The Revolut World Tour continues
Mexico is just one of 40 different countries Revolut is active in, with the country becoming one of its key Latin American markets in the pursuit of 100 million global customers.
Mexico joins Colombia as the other LatAm market Revolut is aiming to receive a full banking licence in, while in Argentina, the company is in the process of acquiring Banco Cetelem Argentina, an acquiring bank which is pending approval from Argentine regulators.
While Revolut is looking to compete with Nubank’s digital banking customer base in LatAm, and wider goals for global market share, the company’s international expansion may be currently holding it back from its coveted full UK banking licence.
Last week, a report revealed the Prudential Regulatory Authority (PRA), Revolut’s lead UK regulator, is currently concerned about Revolut’s risk management controls and whether they can maintain this in tandem with its global expansion goals.
It appears the next challenge for the $75bn valued fintech is to harmonise risk management controls across multiple markets to not only gain banking licences, but to reach its goal of 100 million global customers.
