Revolut vs Nubank: Mexico's 130M Consumer Prize
Hey Digital Banking Fanatic!
Mexico's digital banking market is on fire 🇲🇽🔥
Revolut Bank México just reported 635,000 customers and 7,278 million pesos (US$ 422 million) in deposits at the end of Q2, which is a 94% jump in deposits from the previous quarter. Less than six months in, and they're already sprinting.
Meanwhile, Nubank's Mexican operation posted a $7 million profit in Q2, down from $14 million the quarter before as rising provisions ate into margins. Their loan book hit $2.1 billion, but NPLs climbed to 11.3%.
It's a proper ring knockout in the making. Revolut is throwing haymakers on growth and deposits. Nubank is swinging with a massive credit portfolio but taking hits on asset quality. Two very different strategies in the same arena.
This fight has just started, and Mexico's 130 million consumers are the real prize.
Now, let's dive into today's biggest Digital Banking stories 👇
See you tomorrow!
Cheers,
NEWS
🇲🇽 Revolut Bank México reaches 635,000 clients and over 7,200 million pesos in deposits after less than six months of operation. Deposits grew 94% QoQ driven by its yield-bearing personal account.
🇬🇧 Revolut CEO Nik Storonsky in talks over a new pay deal that would boost his ownership if the company hits a $500bn valuation. The incentive structure follows his previous scheme, which awards share payouts as Revolut clears pre-agreed valuation thresholds.
🇲🇽 Nubank posts $7M Q2 profit in Mexico, half the prior quarter's result as provisions jumped 20.1% to $130M. The NPL ratio rose to 11.3% while the credit portfolio matures and scales to $2.1B.
🇺🇸 Varo Bank expands fee-free in-store cash add capabilities nationwide. Customers can now add cash to their Varo account at retail locations across the country without paying a fee.
🇳🇱 Rabobank to invest €2 billion in building an IT framework for AI. The Dutch bank plans to overhaul its technology infrastructure over the coming years to support large-scale AI deployment across its banking operations.
🇪🇸 ConnectPay and GenToo partner to launch compliance-first digital banking for Spain's retail market. The collaboration will bring e-money accounts and micro-cash advances to Spanish consumers, targeting 85% digital banking adoption by 2027.
🇰🇷 KakaoBank posts record $230M first half profit, up 24.4% YoY on steady loan growth and higher fee income. Non-interest income reached 36% of total revenue as the bank's customer base expanded to 27.63 million.
🇳🇿 Dosh pauses its New Zealand banking bid after the Reserve Bank declined its registration application. The FinTech will focus on home loan advice and its One NZ partnership while awaiting new deposit-taker legislation.
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