Revolut officially enters the Mexican market. On Tuesday (June 27, 2024), the UK-based fintech company announced the launch of its full banking operations in Mexico, concluding its pilot phase.
This marks the first time Revolut has opened a licensed bank outside of Europe.
Revolut is betting on Mexico's expensive and Shard banking system.
Mexico was deliberately chosen by Revolut. The country has a population of approximately 130 million, while its traditional banking system is expensive and cumbersome. This presents a significant opportunity for a fully digital bank.
Revolut recognized the need for mobile banking with low fees and an easy account opening process.
To obtain a banking license in Mexico , Revolut chose a different path: becoming the first independent digital bank to be approved by applying directly to the regulatory authority, without acquiring a local bank or partnering with any local company.
Revolut invested over $100 million in this operation, double the minimum required by regulations. Upon commencement of operations, the bank's Capital adequacy ratio reached 447.2%, far exceeding the mandatory standard.
Credit rating agencies have given very positive assessments. HR Ratings has assigned a long-term HR AAA rating, while S&P Global has given it an 'mxA+' rating with a stable outlook.
Large Capital reserves and product design focused on consumer trust.
Revolut's products and services focus on solving the biggest problems customers often face. Revolut's checking account automatically pays interest on the balance, with a higher interest rate applied to the first 25,000 Mexican pesos deposited. Users do not have to transfer money to a separate savings account.
Transferring money between Revolut accounts is instant and completely free. Sending money from a Revolut account to another bank internationally incurs significantly lower fees than usual. The app allows you to maintain balances in over 30 different currencies, with competitive exchange rates.
This fintech company also focuses on specific customer groups. Revolut's Metal package includes a personalized card with a special design, along with access to airport lounges in Mexico City. A Revolut Kids & Teens service (for those aged 6 to 17) is also coming soon.
CEO and co-founder Nik Storonsky said that the Mexican market will serve as a model for Revolut to expand into other developing countries later on. He believes this launch is a stepping stone to replicating Revolut's banking system globally.
This expansion received significant support from its strong financial backing. In 2024, Revolut achieved $3.8 billion in revenue, marking its fourth consecutive year of profitability.
Entering 2025, after a new round of Capital , the company's valuation will reach $75 billion.
