Financial Inclusion | July 14, 2017

Fintech startups are disrupting Mexican financial services by banking the unbanked

The team at


Financial technology, or fintech, startups offering digital payment, remittances and lending services, could capture 30% of Mexico’s banking market within 10 years, according to Finnovista, a fintech accelerator.

Six in 10 Mexicans are unbanked. Financial exclusion is a problem but “also an opportunity,” Francisco Meré, the director of Bankaool, one of the first online-only banks in Mexico, told the Financial Times[paywall]. “The cost of engaging a customer through technology is a fraction of using a branch.”

Clip has grown to become one of Mexico’s largest digital payment providers (Accion sold its stake in February). Kubo Financiero provides peer-to-peer lending; Albo, mobile-based banking; and Kueski, a digital micro-lender — all have secured venture backing.

More than 150 fintech, or financial technology, firms now operate in Mexico, giving Mexico 35% of fintech companies serving the under- and un-banked in Latin America.

Long lines, high fees and poor branch and cash machine coverage aren’t helping financial-services incumbents.