Banorte has won approval to operate a 100% online bank, a development the bank says will help it strengthen its position as a digital leader in the Mexican banking market.

The bank last week advised the Mexican Stock Exchange that the National Banking and Securities Commission (CNBV) had authorized the creation of Bineo, as the digital bank will be called.

The authorization is an “important step in the development of our digital bank,” Banorte told investors, adding that it will “allow us to move closer to the consolidation of our medium term corporate strategy and of our position of digital leadership in the Mexican market.”

The newspaper El Universal reported that Bineo will become the 51st bank operating in the Mexican market. Banorte is the first established bank in Mexico to receive authorization to operate a stand-alone, fully digital bank.

Santander is seeking CNBV authorization to bring its online bank Openbank to Mexico, while Banregio is awaiting approval that will allow its Hey Banco digital bank to operate independently.

Online banking is growing in popularity in Mexico. CNBV data shows that there were over 68.2 million digital transactions in the first six months of the year, a 20% increase compared to the same period of 2021.

Banorte general director Marcos Ramírez said last week that the objective of the “digital transformation” is to “create an [online banking] experience without friction, … [and] improve [waiting] times for a vast number of processes.”

With reports from El Universal and El Economista