Digital bank Openbank makes entrance in Mexico, offering fee-free services and competitive interest rates
In a move to expand its footprint in the Latin American market, Openbank, a fully digital bank launched by Grupo Santander, has officially started operations in Mexico on November 19, 2024. This follows its successful establishment in Spain, Germany, Portugal, and the Netherlands, making it Europe's largest digital bank by deposit volume.
Openbank's entry into Mexico is significant, given the country's cash-heavy economy and relatively low account ownership and digital payment penetration. With only 37% account ownership and 32% digital payment penetration in 2021, Openbank is well-positioned to capture a large segment of first-time digital users and underbanked consumers.
As a cloud-native bank, Openbank offers highly scalable, secure, and flexible services, appealing to digitally savvy consumers. It benefits from Santander’s global footprint and experience in operating digital banks across various markets, enabling it to quickly roll out products and attract customers.
One of Openbank's key offerings is a savings account with an annual return of up to 12.5%. It also provides day-to-day finances services, including debit and credit cards, SPEI transfers, free cash withdrawals at Santander's ATMs, and access to 10,000 Santander Mexico ATMs without any charges.
To become a customer, the process is swift and straightforward, taking only a few minutes. Openbank customers also enjoy 24x7 telephone support and a series of free features to maximise card security and usage.
Moody's and Fitch have recognised Openbank for its strength and long-term projection, awarding it the highest local scale ratings. Petri Nikkila, Global CEO of Openbank, sees Mexico as a market with great potential for the digital bank. Matiás Nuñez, CEO of Openbank Mexico, emphasises the combination of advanced digital banking experience, fintech, and the trust of Santander.
Openbank's debit and savings products have no minimum balance or hidden fees, making them accessible to a wide range of consumers. The bank operates with one of the world's most advanced technology platforms, ensuring a modern, seamless customer experience.
Those who signed up to the waiting list are the first to become customers. Openbank Mexico's customer deposits are insured by the Institute for the Protection of Bank Savings (IPAB), providing peace of mind for its users.
With its innovative digital banking services, Openbank is poised to drive financial inclusion and convenience in Mexico's underpenetrated market, offering easy access, convenience, and integrated digital financial products backed by an established banking group.
Digital banking services offered by Openbank, such as savings accounts and debit cards, are well-positioned to cater to Mexico's first-time digital users and underbanked consumers, given the country's low account ownership and digital payment penetration. As part of the Santander group, Openbank benefits from their global experience in operating digital banks across various markets, enabling it to quickly adapt technology for the Mexican market.
