The analysts they consider that asking for banking licenses will help so that companies not only offer savings accounts or credit cards, they will also be able to offer payroll and investment productspowers that are only given to banks.
The wave of applications does not mean that everyone is going that route, says Álvaro Vertiz, partner at Dentons Global Advisors. “Not all fintech companies necessarily have to follow the banking model and it will depend on the business model they want to follow,” he maintains. “Their interest is to have much greater regulatory freedom for the purposes of developing a deposit business and a credit business including additional financial services.”
It is then a strategy to expand the product offering and thus compete with the large traditional banks.
“This is going to force traditional banking to evolve and modernize so that they can adopt the efficiencies that fintechs have. If you ask me, eventually everyone is going to have to start migrating to a digital bank figure because it is not going to be able to be competitive to continue with models with past models,” says Vertiz.
How does it impact customers?
Players like Nu have said that the bet, once they receive the banking license , is betting on payroll products. Which shows that in the first phase, the entities will seek to serve individuals. In second place would be SMEs.
“What is going to be interesting is how competition is going to force traditional banking and digital banking to improve their offering and improve their prices,” adds Vertiz and does not rule out that investment products are also in the spotlight, since performing accounts proved to be successful.
In addition to payroll products, another benefit for clients is the protection of their resources.
“The fact of having a banking license, among the many modifications it has, will basically be the savings protection mechanisms that a banking institution has against what a Sofom has,” says Roberto Soto, executive director, in an interview. senior financial institutions at HR Ratings.
Sofomes and Savings Banks have savings protection of up to 25,000 UDIS, while banks’ savings protection amounts to 400,000 UDIS.
Soto adds that expanding the number of banks in Mexico can help with financial inclusion. “In general, something that would be positive is to strengthen the alternative for users or non-users to be able to join the financial system,” he says.
The specialist highlights that for there to be more financial inclusion it will also depend on how much these institutions actively seek to have people who currently do not participate in the financial system open a savings, investment or credit account.
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