Mexico City — Fomento Económico Mexicano (FEMSA), the parent company of the ubiquitous Oxxo convenience stores in Mexico, will launch a suite of financial products focused on remittances and loans to small businesses, after receiving approval to operate as a fintech by Mexico’s Banking and Securities Commission (CNBV).
The license allows individuals to open accounts in dollars with the company and receive larger deposit amounts, informed FEMSA executives at a conference with analysts and investors. This opens up the possibility for the launch of products that take advantage of Oxxo’s already-in-place services to customers in terms of basic banking needs.
The launch of the company’s fintech activities will be built on the relationship between the Oxxo corner stores and the Coca-Cola FEMSA bottling company, in order to offer financial solutions with a more sophisticated business-to-business product, and which may operate under a new brand.
The conglomerate plans to also offer personal loans, as well as working capital loans to small businesses, once it stabilizes its customer base with the new license.
FEMSA’s fintech proposal comes amid the reconfiguration of retail banking in Mexico, in light of the imminent sale of Banamex by Citi and the commitment of financial institutions such as Grupo Financiero Banorte to digital banking.
FEMSA ruled out seeking a license to operate as a bank for the time being.
FEMSA, through Compropago the subsidiary behind Oxxo’s Spin financial product, received approval in October to operate as an electronic payment fund institution under Mexico’s Fintech Law.
The regulatory permit comes 18 months after the start of operations of the payment method Oxxo Spin, which allows deposits, transfers, purchases and payments to be made through a mobile application.