Revolut Prepares to Launch Operations in 2025
14:19 25/09/2024 - PesoMXN.com
The British company Revolut estimates that it could begin operations in the first six months of next year, as long as the National Banking and Securities Commission (CNBV) conducts the necessary audits and tests. Juan Guerra, the CEO of Revolut Mexico, stated in an interview that the time it takes for the regulator to grant authorizations is hard to predict, but he is hopeful it will happen by the first quarter or, at the latest, the second quarter of 2025. "Everything needs to be in order for the audit to take place. The regulator also has to space out their audits because there are others ahead in line. They first conduct a diagnostic visit, but in an ideal world, the operational audit should already begin during that visit," the director explained. However, he mentioned that the upcoming change in government in October could extend this process.
While awaiting the authorizations, Revolut plans to start operations with a level 4 debit account, meaning they will allow unlimited deposits and international transfers. "No-cost money transfers between Mexico and the United States are going to change people’s lives. They are like instant, free remittances," he highlighted. When asked about the possibility of offering interest-earning accounts, like some of their competitors do, Guerra indicated that they will assess consumer needs. "Over time, we plan to offer all banking services, which is one of our biggest advantages. The question is in what order we should prioritize what customers consider most important," he added. Revolut already has more than 100,000 people on a waiting list, who have been surveyed about the financial products they want. Guerra expects to serve several million customers in the coming years, so they plan to hire more employees, adding to the 180 people already working at the company. "My goal for Mexico is to reach several million customers in five years. In other regions, we have staff in countries like India that support the UK and Europe. But in Mexico, I want everything to be managed here, which means we’ll be bringing on hundreds of people," he emphasized. In a later phase, Revolut would look to offer payroll products, such as fund transfers, loans, and advances. "If you ask me, I think there’s a lack of innovation in payroll lending, so before launching something that already exists, we want to give it a rethink. Payroll loans tend to be costly, and sometimes what you really need is to get paid for the days you’ve worked," Guerra concluded. He also highlighted that they do not plan to make a massive launch of credit cards or spend large amounts on customer acquisitions. "We’re not going to flood the credit bureau with millions of people, nor offer exorbitant interest rates, nor spend hundreds of millions of dollars to attract customers. That’s not our goal," he reiterated. Revolut already has offices in Montes Urales, in Mexico City, but plans to move in the coming months to a new space on Paseo de la Reforma.
Revolut's entry into the Mexican market promises to increase competition in the banking sector, especially in terms of remittance and money transfer costs. This could be a significant breakthrough for consumers seeking more accessible and efficient services. However, it’s important for users to also evaluate the available options and not just be swayed by novelty; it’s always wise to compare and analyze rates and conditions before opening an account.
