Brazil and Mexico are two crucial regions for future fintech endeavors. Revolut acknowledges the potential of exploring these regions and will expand further into these countries over the coming months. But, more importantly, the digital bank will hire 500 new employees across both countries by 2025.
Revolut Taps Brazil and Mexico
There are several reasons why Brazil and Mexico are of interest to fintech companies:
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Both countries have large populations with a growing middle class. That provides a large potential customer base for fintech products and services.
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Both countries have relatively underdeveloped financial sectors, which provides an opportunity for fintech companies to provide innovative solutions that can improve access to financial services.
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Both countries are experiencing economic growth, which is creating an environment that is conducive to the development of new businesses, including fintech companies.
For Revolut, Brazil and Mexico present new growth opportunities. Moreover, the company looks to consolidate its Latin American market position. A logical choice, considering the Revolut LiteApp launching earlier in 2022. The application is available in Chile and Ecuador, indicating it will also roll out to Mexico and Brazil shortly. There is no official timeline for that rollout, but it is a sensible decision to pursue these opportunities.
In addition, these are two crucial markets for any fintech or financial institution. They represent tremendous payment transaction volume to and from the United States. Moreover, both countries have seen a strong uptick in using digital accounts for their banking and other financial needs.
One potential hurdle is the lack of a banking license in Mexico. However, obtaining one is not impossible, although Revolut must register as a money transmitter first. There will be some legal hurdles and red tape to overcome, but that license should ultimately be a formality for the global digital bank.