Grupo Financiero Banorte, one of Mexico’s largest financial firms, has introduced bineo, a virtual bank that will provide savings accounts as well as personal loans with the goal of onboarding 2.8 million new customers in the upcoming 5 years.
Banco Banorte, which is reportedly owned by the firm, currently claims 12 million customers, notably making it the second largest in the nation when taking credit portfolio size into consideration.
In statements shared with Reuters, the Group’s president, Carlos Hank, noted:
“There’s a segment of our clients that today demands a 100% digital service.”
Hank further explained that Banco Banorte will aim to continue doing business via its network of branches and its own mobile app, while noting that bineo will not take customers away from the established banking institution. The latest launch is set to have bineo compete with relatively smaller, all-digital banks like Brazil’s Nubank and Argentina’s Uala.
Hank added:
“We want to be a bank that will be able to offer its clients a mortgage, a credit card, a car loan.”
In Mexico, the financial industry is primarily led by the domestic divisions of Spain’s BBVA as well as Santander, along with Citigroup. Banco Banorte is reportedly the biggest local banking service provider.
But available data reveals that about a third or 30% of adults residing in Mexico do not use formal financial products or services. And over 20% of its 126 million residents also don’t have Internet access.
Hank acknowledge that there’s “still a lot to do,” while noting that bineo has a key advantage: the support of Grupo Financiero Banorte.
This past week, Santander Mexico revealed its intention to introduce its Openbank online banking service in the next few months.
In July of last year, Hey Banco, supported by Banregio Grupo Financiero, obtained authorization from the relevant authorities to serve as a banking platform.