Mexico Fintech Chatter – Feb. 4, 2025

Mexico FinTech News

A tale of two digital strategies: Banorte’s Bineo posts massive losses as BBVA thrives

Talking to the financial press at Bineo’s underwhelming launch in January 2024, CEO Marcos Ramírez promised fast results: “this new building’s floors will go up quickly, we wanted to show you the foundations at this point”. A year later, there remains little to be seen – other than massive losses that weigh on an otherwise strong consolidated set of results at the group level. Bineo closed 4Q24 with just MXN 47 million (that’s no typo: MILLION, with an M) in loans, yet somehow spent 10x that amount in operating expenses. During the conference call with analysts, Mr. Ramírez said “we realize that we need to move faster, and we realize that we need to do something”, while CFO Rafael Arana stated the strategy would “be quite aggressive in the market in a good way, not in a – sorry for the word, in a stupid way […] we don’t like to compete just on price like some people are competing”. They better hurry, because while the rest of the financial group did well, buying management time to right the digital ship, 2025 promises to be a more challenging, volatile year with interest rates declining (hitting NIM), and the economy weakening (hitting asset quality). On the other hand, BBVA reported another set of record results in Mexico, with profits topping MXN 107 billion. Despite its larger size, BBVA outpaced Banorte across most metrics, including both loan and deposit growth. In 2024, it was clear BBVA’s focused one-bank physical/digital execution outperformed Banorte’s two-bank physical and digital strategy and proven the right call for shareholders. Indeed, if Bineo’s numbers do not improve soon, we would not be surprised to see the experiment with a separate digital bank coming to an ignominious end.

Source: Banorte 4Q24 Earnings Call Transcript.

 

Banks report solid quarterly results, for the most part; 2025 looks challenging, but continued loan growth expected

Most Mexican banks reported solid 4Q24 results last week, but with declining rates beginning to impact margins. As explained above, BBVA’s Mexican operations saw another record year, with growth across the bank and the other subsidiaries. Similarly, Banorte posted double-digit net income growth at its Insurance and Broker operations; for 2025, they expect 8% to 11% loan growth, but net income lagging slightly, growing from 6% to 10%. Banregio had a more muted performance, with net income up just 4.4% in the quarter, pressured by higher provisions and expenses; however, for 2025, the bank expects a rebound, with loan growth of 10-15%, and profits up 11-16%. Lastly, BanBajío saw a 9% contraction in net income, driven by its high sensitivity to the reference rate; in 2025, management expects 8-11% loan growth, but continued pressure on margins, with net income declining between -8% and -13%.

 

FinTech México Festival 2025: A Platform for Connection and Innovation

The FinTech México Festival 2025, set for February 27 in Mexico City, will bring together leaders from the financial and technology sectors. Felipe Vallejo, president of FinTech México, highlighted the event’s importance in fostering collaboration and driving innovation within the fintech ecosystem. The festival will address industry challenges and showcase advancements. Register here

El Economista, 01/27/25, Staff; “FinTech México Festival 2025: A Platform for Connection and Innovation”.

 

Fintual Launches ‘Fintual Acciones’ in Mexico, Enabling Investment in Over 2,000 U.S. Stocks and ETFs

Chilean fintech Fintual has introduced ‘Fintual Acciones’ in Mexico, allowing users to invest directly in more than 2,000 U.S. stocks and ETFs, including companies like Apple, Nvidia, and Tesla. The service operates through Alpaca Markets, a U.S. broker regulated by the SEC and FINRA, and a member of the SIPC, ensuring protection up to US$500,000. Investors can start with as little as US$1, utilizing fractional shares to access high-value stocks without purchasing entire shares. The feature will be gradually rolled out to users who join the waiting list. Fintual currently serves over 150,000 clients in Chile and Mexico, managing more than US$1.2 bn in assets.

DF SUD, 01/28/25, Staff:  “Fintual Launches Trading Product in Mexico: Now You Can Invest in Over 2,000 Stocks and ETFs”.

 

Kushki Reports 56% Increase in Processed Payment Volume in Mexico

Kushki reported a 56% increase in processed payment volume in Mexico in 2024, underscoring the market’s strategic importance. Regionally, the company saw a 54% increase across operations in Chile, Colombia, Peru, and Ecuador. Fernando López, Kushki’s General Manager in Mexico, emphasized the country’s payment ecosystem potential, with the Point of Sale (POS) terminal market projected to reach $2.49 billion by 2029. POS terminals in Mexico reached 6.1 million units in 2023, up 14% from 2022. The growth of e-commerce and omnichannel payment strategies continues to drive opportunities for digital payment solutions.

El Economista, 01/30/25, Sebastian Estrada: “Kushki Reports 56% Increase in Processed Payment Volume in Mexico”.

 

Wise Enters Mexican FX transfer Market

London-based fintech Wise has launched operations in Mexico, allowing users to send money from Mexico to nearly 160 countries in 40 currencies. Wise joins other fintechs like Revolut and Airwallex in targeting Mexico’s cross-border payment market, although this announcement refers to payments from Mexico to abroad. The company aims to offer greater transparency, highlighting that in 2024, Mexicans lost around US$446 mn due to hidden fees on international transfers. Wise estimates that traditional providers in Mexico may conceal up to 10.4% of transfer costs through undisclosed charges.

El Economista, 01/30/25, Fernando Gutierrez: “Wise Enters Mexican Remittance Market”

 

Bitso Launches ‘The Push’ Accelerator for Stablecoin-Focused Startups in Latin America

Mexican crypto exchange Bitso introduced “The Push,” an accelerator program targeting startups developing stablecoin-based solutions. The initiative aims to position Latin America as a hub for innovation in digital payments and blockchain technology. Participants will receive specialized mentorship and up to $250,000 in investment to foster the adoption of stablecoins in strategic markets.

Latam Fintech Hub, 01/30/25, Staff: “Bitso Launches ‘The Push’ Accelerator for Stablecoin-Focused Startups in Latin America”.

 

Capa, a Mexican and Dominican Republic cryptocurrency startup, said it raised US$2.5 million

Capa enables users to trade cryptocurrencies in local Mexican pesos and was founded in 2024 by 25 year-old Dominican Juan Diego Oliva (CEO). With Bitso likely Mexico’s most successful fintech measured by profitability, and bitcoin at new highs, it is no surprise new money is going to crypto startups.

Diario Digital, 01/30/25, Yamilé Tapia: Crypto Startup Capa Raised US$2.5 mn

 

Regulatory Landscape for Fintech in Mexico and Latin America in 2025

The fintech sector in Mexico and Latin America continues to grow rapidly, supported by evolving regulations that aim to balance innovation with consumer protection and system stability. In Mexico, the National Banking and Securities Commission (CNBV) updated its Fintech Law in 2023, enhancing licensing, data management, and fraud prevention protocols. This has driven fintechs to invest in security and compliance, with licenses granted rising by 30% in 2024.

TyN Magazine, 01/27/25, Staff: “Regulatory Landscape for Fintech in Mexico in 2025”

 

 

LatAm FinTech News

What Could Drive the Long-Awaited IPOs of Latin American Startups Like Rappi in 2025?

Latin American startups, including Rappi, are cautiously considering IPOs after years of postponement due to high interest rates and global market uncertainty. However, 2025 may present a more favorable landscape for public offerings. Declining U.S. interest rates are expected to improve market conditions, enhancing valuations and profitability for investors. Stabilizing economic factors may also increase market receptivity, giving startups access to much-needed capital to support growth. Additionally, improved corporate governance and scalable business models are building investor confidence.

Bloomberg Línea, 01/29/25, Daniel Salazar:  “What Could Drive the Long-Awaited IPOs of Latin American Startups Like Rappi in 2025?”.

 

Finaktiva Expands into Peru with Digital Financial Suite

Colombian fintech Finaktiva has entered the Peruvian market, offering a comprehensive digital suite that includes supply chain financing, loans, and digital banking services aimed at optimizing cash flow for businesses. CEO Pablo Santos highlighted Peru’s significance, noting that its factoring market is three times larger than Colombia’s. Finaktiva’s suite, launched in 2024, enables real-time cash flow optimization, payment management, and invoice negotiation.

Latam Fintech Hub, 01/28/25, Staff: “Finaktiva Expands into Peru with Digital Financial Suite”

 

 

Global FinTech News

Elon Musk’s X to Launch Digital Wallet with Visa

Elon Musk’s social media platform X announced the launch of a digital wallet and peer-to-peer payments services provided by Visa. Visa will enable X users to move funds between traditional bank accounts and their digital wallet and make instant peer-to-peer payments, like with Zelle or Venmo. The X Money service is expected to launch in the first quarter, and deals with more financial partners are likely, according to sources.

CNBC, 01/28/25, Hugh Son and MacKenzie Sigalos: “Elon Musk’s X begins its push into financial services with Visa deal”.

 

New US Sovereign Fund Could Buy TikTok, Says Trump

Donald Trump signed an executive order on Monday ordering the creation of a sovereign wealth fund within the next year, saying it could potentially buy the short video app TikTok. Administration officials did not say how the fund would operate or be financed, but Trump has previously said it could be funded by “tariffs and other intelligent things.”

Reuters, 02/03/25, Trevor Hunnicutt and Pete Schroeder: “Trump orders creation of US sovereign wealth fund, says it could buy TikTok”

 

Swan Raises €42 mn to Accelerate Embedded Banking Adoption Across Europe

Paris-based fintech Swan has secured €42 mn in a Series B funding round to expand its embedded banking services across Europe. The investment will support Swan’s international growth, including upcoming launches in the Netherlands and Italy, and the development of new product lines tailored for larger organizations. The company currently has over 100 customers across 30 European countries and has processed more than €7 billion in transactions.

FinTech Global, 01/30/25, Staff: “Swan Raises €42 mn to Accelerate Embedded Banking Adoption Across Europe”.

 

Lendo Secures US$690 mn Facility from J.P. Morgan

Saudi Arabia-based debt crowdfunding platform Lendo has secured a US$690 mn facility from J.P. Morgan. This significant funding aims to bolster Lendo’s capacity to provide financing solutions to small and medium-sized enterprises (SMEs) in the region.

FinTech Global, 01/31/25, Staff: “Saudi Debt Crowdfunding Platform Lendo Secures US$690 mn Facility from J.P. Morgan”

 

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