Mexico FinTech News
Banorte and Bineo: Learning from Others’ Mistakes
It is not unusual for Mexican listed banks (or any company for that matter) to present a more optimistic outlook than market consensus (with the notable exception of Inbursa). Given that banks’ results tend to mirror the broader economy, a somewhat rosier picture is often expected. However, the narrative Banorte is attempting to push regarding Bineo has raised eyebrows in the investor community. “Results weren’t bad; they were good, better than we had expected, in fact,” said CEO Marcos Ramírez during a press conference following 1Q25 results. Which raises the question – if management was expecting worse than the actual results, why did they go ahead in the first place? Approximately US$150 million were invested to establish the platform, followed by roughly US$75 million in operating expenses in 2024 and US$15 million in 1Q25, all to achieve a loan portfolio of less than US$3 million. It is hard to find the good in that.
This is not to say that the idea of a stand-alone digital bank should have been ruled out from the outset. Management teams are meant to take calculated risks, which one might argue this investment was. Meanwhile the stock is up 22% YTD, outperforming the IPC’s 15% rise, suggesting investors are taking this in their stride as the rest of the businesses remain strong (or relieved the experiment is over, and losses coming to an end).
What are the lessons? From our side, 1) a bank license is not enough: despite Bineo’s slogan “El primer banco 100% digital en México”. Like any new business, you need to deliver a product and service that customers want and are not getting elsewhere. In fact, the success of Sofipos like Nubank, Klar, and Stori in attracting massive deposits makes it clear that consumers do not pay that much attention to a piece of paper. Simply put, money talks, and execution matters far more than credentials. By adding complexity and costs, a bank license is a challenge to start with (look at Ualá bank’s failure so far to gain traction versus Nu, Platacard); 2) Social media has been full of stories of Bineo’s lack of autonomy versus its legacy sibling to explain its failure. No doubt this is true, but we think it’s a deeper problem. In this case it may not make sense to disrupt yourself, when your legacy bank is so profitable. Would Coca-Cola launch a disruptive Cola brand? 3) Timing: Bineo just came too late to the fintech game, with incumbents (BBVA) having great digital products, and Nu, Mercado Pago, Platacard already competing effectively.
CNBV’s Data for February Shows Continued Challenges for Sofipos; Nu Confirms License
CNBV posted full financials for the month of February for Sofipos, including Nubank, Klar and Stori. Overall, no major surprises, as loan data matched earlier disclosures by Condusef, and trends were similar to those observed in January. Of note, Nu continued to see strong deposit growth, up an impressive 6% or P$5.6 bn MoM, more than 3x YoY; lower rates helped interest expenses, but higher provisions kept the risk-adjusted financial margin in the red; write-offs also picked up, driving the Adjusted NPL ratio to 21.6%. Klar has yet to recover profitability, with growing expenses weighing on results. Rising provisions also kept Stori in negative territory. In more cheerful Sofipo news, Nu officially confirmed it has received authorization from the CNBV to incorporate as a bank, as was widely reported last week.
El Universal, 04/24/25, Antonio Hernández: Nu México receives banking license approval from CNBV
Spin by OXXO partners with Felix Pago
Spin by OXXO, the digital wallet service of the Mexican convenience store chain OXXO, has partnered with Félix Pago, the fast-growing WhatsApp-based remittance platform, to streamline cross-border money transfers from the United States to Mexico. This collaboration enables users in the U.S. to send money via WhatsApp through Félix Pago, with recipients in Mexico receiving funds instantly in their Spin by OXXO accounts. Recipients can use the funds directly within the app or withdraw cash at over 23,000 OXXO stores nationwide. The service is available to verified Spin Más (N2) account holders. According to Femsa, the service is designed to be accessible and easy to use. Recipients of the remittances pay no fees, and the sender covers a $2.99 charge. While OXXO has multiple partnerships, we believe this one could be especially powerful and successful, marrying the low cost, and simplicity of Felix Pago with the ubiquity of Oxxo.
El Economista, 04/24/25, Sebastián Estrada: Spin by Oxxo and Felix Pago Set oup Alliance to Facilitate Remittances | Other sources: Marcel van Oost: Spin by Oxxo and Félix Pago Join Forces to Revolutionize U.S.-Mexico Remittances.
Fintechs Play a Key Role in Improving Financial Health in Mexico
Fintech companies are playing a critical role in enhancing financial health in Mexico, especially among underserved populations, according to BBVA. Through accessible digital tools and platforms, fintechs help users manage their finances more effectively—promoting savings, budgeting, and financial planning. In a country where a large portion of the population remains unbanked or underbanked, fintech innovation has become essential for economic empowerment. Collaborations between fintechs and traditional banks are also driving a more inclusive and robust financial ecosystem nationwide.
BBVA, 04/18/25, Staff: Fintechs play a key role in improving financial health in Mexico.
Additional reading (and listening)…
- Bitso to discontinue Mexican debit card in May.
- Openbank aims to adapt a global digital banking model to the Mexican market.
- Bitso – Serving 12 Million Customers and Building a Crypto Giant Through Innovation, Transparency, and a Curious Mind.
LatAm FinTech News
Brazilian Fintech Credix Launches US $51mn Credit Rights Investment Fund to Support SMEs
Brazilian fintech Credix has launched a US $51mn Credit Rights Investment Fund (FIDC) to improve financing access for small and medium-sized enterprises (SMEs) in Brazil. Credix enables rapid creditworthiness assessments and near-instant financing decisions using artificial intelligence and purchase data. Through its platform Credipay, businesses can offer credit to customers without assuming risk, while receiving immediate payments.
Latam Fintech, 04/25/25, Staff: Brazilian fintech Credix launches US $51mn credit rights investment fund to support SMEs.
Brazilian Fintech Zro Bank Expands B2B Financial Services to Argentina, Peru, and Chile
Brazilian fintech Zro Bank, based in Recife, is expanding its B2B financial services into Argentina, Peru, and Chile as part of its regional growth strategy. The company appointed Rafael Lavezzo, formerly of Nuvei and Zoop, to lead the expansion efforts. Originally launched as a multi-currency digital bank, Zro Bank shifted its focus to B2B services in late 2023. It processed over US $7bn in transactions over the past two years and reported US $17mn in revenue for 2024, with ambitions to grow that figure by 50% by the end of 2026.
Latam Fintech, 04/24/25, Staff: Brazilian fintech Zro Bank expands B2B financial services to Argentina, Peru, and Chile.
Additional Reading…
- Nubank ft. David Vélez: An Outsider Upends the Brazilian Banking System.
- Nubank launches campaign with Tom Felton and invites customers to meet him.
- TaxDown raises fresh funding to scale AI tax services across Spain and Latin America.
Global FinTech News
U.S. Fintech Alpaca Raises US $52mn Series C to Expand Global Brokerage Infrastructure
U.S.-based fintech Alpaca has raised US $52mn in a Series C funding round to accelerate its international expansion and strengthen its API-driven brokerage platform. The round saw participation from new and existing investors, including Derayah Financial, 850 Management, National Investments Company (NIC), Unbound, and Portage Ventures. Alpaca supports over 5mn brokerage accounts through more than 200 partners across 40+ countries. The new capital will help Alpaca scale its presence in the U.S., Middle East, and Asia, and introduce new offerings like 24/5 trading.
FinTech Global, 04/24/25, Staff: Fintech Alpaca lands US $52mn in Series C as it scales brokerage tech across global markets.
Froda Secures US $23mn Series B to Expand SME Debt Financing Across Europe
Swedish fintech Froda has raised a US $23mn (€20mn) Series B round led by Incore Invest to accelerate its embedded debt financing platform for small and medium-sized enterprises (SMEs) across Europe. Froda integrates lending services into marketplaces and payment platforms, providing SMEs with cash flow-based financing directly through their bank accounts.
TechCrunch, 04/23/25, Kyle Wiggers: Froda secures US $23mn Series B for its debt financing platform for SMEs.
Additional Reading…
- eBay and Klarna bring flexible payment options to U.S. shoppers through expanded partnership.
- Barclays partners with Brookfield to enhance its payment acceptance business.
- Alternative Payments raises US $22mn to modernize B2B payment offerings.
- Revolut 2024 Annual Report.
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