Mexico's Banorte gets green light to launch new digital bank
MEXICO CITY, Oct 10 (Reuters) - Mexican financial regulators gave Grupo Financiero Banorte permission to launch its new digital bank Banco Bineo, according to an announcement in the country's official gazette on Monday.
The new bank will kick off operations with capital of 1.675 billion pesos ($84 million), the government document stated.
Banorte announced earlier this month that it received authorization from the banking commission and central bank to launch Banco Bineo.
The move comes as fintech startups continue to gain traction in Mexico.
Since the government enacted fintech legislation in 2018, 58 companies have been approved or provisionally approved for payment licenses even as no new retail banking licenses have been issued, according to the Mexican Fintech Association.
Mexico has attracted in the last few years international financial technology startups including Brazil's Nubank and Argentina's Uala, while also hosting the launch of local players Stori, Klar and Albo.
Nubank said last month it had reached 70 million clients across three countries where it operates, including 3.2 million users located in Mexico.
Banorte announced in its second-quarter results that it boasts a total of 6.7 million digital clients. ($1 = 19.9706 Mexican pesos) (Reporting by Valentine Hilaire and Ana Isabel Martinez in Mexico City Editing by Matthew Lewis)
