Mexico’s digital financial company Plata has received final approval from the National Banking and Securities Commission (CNBV) to operate as a full bank, concluding a three-year application process.
The regulatory clearance allows Plata to expand beyond its existing credit card business, which serves 3 million active users entirely through a mobile app.
Plata’s latest funding round valued the firm at $3.1bn, reported Bloomberg.
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The institution operates without physical branches and plans to broaden its range of products following the licence approval.
Banco Plata co-founder and CEO Neri Tollardo was quoted by Mexico Business News as saying: “The level of scrutiny and the processes by the regulatory authorities to reach this point are the main reasons why the banking sector in Mexico has remained one of the strongest and most solid in the world.”
He adds that the approval allows new digital players to foster competition and expand access to banking services.
The development places Plata ahead of other fintech players seeking similar status. Mercado Pago, part of MercadoLibre, and Brazil’s Nubank remain in the queue for regulatory approval, although Nubank secured initial authorisation in April.
Elsewhere, Mexican fintech Klar aims to obtain a banking licence through acquisition, pending regulatory review of its purchase of Banorte’s digital unit Bineo. Plata now joins UK-based Revolut among digital banks with full authorisation in Mexico.
Last month, Revolut started full banking operations in Mexico after concluding its beta testing phase.
The official launch of Revolut Bank S.A Institución de Banca Múltiple marks the company’s first bank established outside of Europe and extends its presence to a total of 40 countries.
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