Finance
Santander launches fintech in Mexico to expand digital services
Global Banking & Finance Review®
Company
By Kylie Madry
MEXICO CITY (Reuters) – Spanish banking giant Santander started rolling out its digital Openbank in Mexico on Tuesday, including a website and smartphone app.
So-called fintechs have taken Mexico by storm in recent years, gobbling up market share as unbanked Mexicans go online and traditional bank clients reject what they view as poor service.
Openbank adds a new, strictly digital option to Santander, which already offers app-based services and online banking. Clients previously registered for the waiting list will be the first to join Openbank.
Openbank already operates in Spain, Germany, Portugal and the Netherlands, and is the largest digital bank in Europe by deposits, Santander said.
Mexico has huge potential for a digital bank, said Openbank head Petri Nikkila in a statement. “We hope to become a reference point for Mexican clients who want such competitive products.”
Openbank is offering a savings account with a 12.5% annual return in Mexico, in line with other digital banks in the country such as Nubank.
Openbank will roll out new products and services for its clients in Mexico in the coming months, it said, without elaborating.
(Reporting by Kylie Madry; Editing by David Alire Garcia and Richard Chang)
Fintech refers to technology-driven innovations in the financial services sector, including mobile banking, online payment systems, and digital currencies that enhance financial transactions and services.
Digital banking allows customers to conduct financial transactions online or through mobile apps, providing services like account management, money transfers, and loan applications without the need for physical bank branches.
A savings account is a deposit account held at a financial institution that offers a modest interest rate, allowing customers to save money while keeping it accessible for withdrawals.
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