Banorte goes for 3 million customers with new digital bank: Carlos Hank González

Grupo Financiero Banorte is preparing to launch a digital bank by the end of this year or early 2024, with which it expects to add some three million clients, said its president Carlos Hank González.

Banorte’s new bank could generate between 5 and 7 percent of the company’s revenues in less than five years, said Carlos Hank González in an interview with Reuters.

«We are waiting for the last phase of approvals from the authorities,» the executive added about the digital bank.

Rafael Arana, the lender’s chief financial officer, said the digital bank already has 200 employees, which could increase to 600 and 800 after opening.

The business will compete with Brazilian neobank Nubank, which has expanded aggressively in Mexico and has captured 3.2 million customers.

In December, Nubank, Latin America’s largest fintech, announced a $330 million capitalization in Mexico in a push to expand.

Banorte’s digital bank plans to add three million customers after learning from its experience of offering credit card applications via cell phones, Arana said.

On the other hand, Banorte expects loan growth of 7 to 9 percent in 2023, slowing from 12 percent last year, Hank González estimated.

«The world is not a stable place by any means, we have to be cautious in guidance,» Arana commented, citing the risk of an economic slowdown in the United States.