Online banking is becoming a hot trend all over the world. Even in Mexico, where the banking system is not overly popular these days. Bankaool, a new online bank, has onboarded 65,000 members in the first ten months. That is quite an achievement, albeit the company focuses on financial inclusion. These on-demand types of financial services are very successful so far.
What makes digital banks so attractive is how there are no physical branches users need to visit. Albeit that may be a downside to some people, younger generations have taken a liking to the idea. The majority of Bankaool accounts is used on a regular basis, 75% of which are accessed through a mobile device.
Continual Success For Bankaool
The success of Bankaool has not gone by unnoticed, as they received the 2016 Best SME Bank Mexico Award. Albeit this is a rather unofficial form of recognition, it is a morale booster for the entire team. The team’s focus on small and medium enterprises is paying dividends, despite a rather disruptive business model.
Bankaool Manager Digital Banking Juan Carlos Espinosa stated:
“You no longer need to stand in line at a bank to open an account. Bankaool offers its clients the benefit of opening a bank account online with only 3 clicks, from a computer or a mobile device; with an Internet connection, you just need to access our web page. We have identified that most accounts are opened at nighttime, which suggests most people begin this process while traditional banks are closed. From that moment on, our clients are able to interact with us via Internet, through Bankaool Móvil (App, available in iOS and Android), our Interactive Client Center (Call Center, IVR and WhatsApp) or via social media such as Facebook and Twitter.”
But there is more to this digital bank than meets the eye. Bankaool provides the best rates for savings or long-term investments. Right now, they can offer clients up to 6.40% annual investment rates. This may seem high, but they have more wiggling room due to not having to fund branch offices.
Establishing a 100% digital bank in Mexico has not been without challenges. Everything about their services is digital, fro the bank accounts to the onboarding process. Despite those hurdles, Bankaool has managed to increase their portfolio to 32.9%, up from 11.9%. At this rate, the company will quickly become a household name in Mexico.
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