Mexican banking heavyweight Banorte taps SAP Fioneer to launch digital bank Bineo
Mexico’s Grupo Financiero Banorte (GFNorte) has tapped the German banking technology provider SAP Fioneer to make its digital banking debut with Bineo.
Digital bank Bineo launches in Mexico
The app-based offering has launched this week with account and lending services, secured by its Multiple Banking Institution license from the National Banking and Securities Commission (CNBV) and the deposit protection scheme of Mexican regulator Instituto para la Protección al Ahorro Bancario (IPAB).
It joins the group’s other banking businesses, including Banco Banorte, which offers financial services centred around retail and commercial banking and has risen to become one of the major players in Mexico’s banking market serving around 12 million clients.
Despite existing within the same structure as Banorte, it’s believed that Bineo’s focus will be on challenging the challengers of South America’s highly saturated digital banking market. Clear competitors include Nubank in Brazil, and Argentinian fintech Ualá, which struck its entry into Mexico back in 2021 with its acquisition of ABC Capital.
Bineo has sharpened its competitive edge by tapping Walldorf-headquartered SAP Fioneer for its cloud banking platform.
The vendor, which has been backed by the private equity and venture capital firm DEDIQ since its inception in 2021 as part of the wider SAP group, says the platform enables banks, insurers and challengers to “quickly test, build and scale new products with flexible banking processes” while promoting a specific focus on market agility, market capture and the customer experience.
In this, it claims an ability to launch new banking products within the space of a week, while also reducing the total cost of ownership by 25%.
Bineo says it will leverage its newfound cloud capability, alongside the support of GFNorte, to achieve its endeavour to onboard 2.8 million new customers over the course of the next five years, according to sources at Reuters.
