Bradesco’s plans to be the most important digital financial institution in Mexico
- August 29, 2022
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Bradesco’s acquisition of Ictineo Plataforma is the first step for the institution to advance digitally in Mexico, where it has been operating for 12 years. The plan is to have a digital and investment account. Alexandre Monteiro, director of Bradescard, gives the details
Bradesco started operating in Mexico when it purchased the C&A card area 12 years ago. In this period, it won over 3 million customers through partnerships with major retailers, such as Shasa, Promoda, Bodega Aurrera, Del Sol and Woolworth (in addition to C&A, of course).
This Thursday, August 25, Bradesco took its boldest step in Mexico by announcing the purchase of Ictineo Plataforma, for an undisclosed amount. The deal still needs to be approved by regulatory authorities in Mexico and Brazil.
With the transaction, Bradesco gains the license of a popular financial institution (Sofipo) and will be able to distribute new products in Mexico, such as digital and investment accounts, as well as payroll-deductible loans.
“We want to become one of the largest digital banks in Mexico,” says Alexandre Monteiro, director of Bradescard in Mexico, in an interview with NeoFeed.
Bradesco’s thesis is that Mexico is still a blue sea when it comes to digital banking. The penetration of neobanks accounts is only 0.8% in the country, according to Monteiro. In Brazil, it is 13%. Another data is credit penetration, which is 41% of GDP. Here, it exceeds 80%.
Bradesco’s plan is to offer more financial services to the credit card user base. But also to launch into the open sea in search of new consumers. “We want to take this blue sea and grow”, says Monteiro.
Without giving numbers, Monteiro says he intends to grow the current portfolio in Mexico by more than five times in the next five years. In the area of cards, the plans are also to increase the number of partners and stores. Today, there are 490 stores. By the end of this year, the goal will be close to 800.
Bradescard México has future plans to carry out the distribution of other products, such as car financing and real estate credit.
To compete in the Mexican digital market, Bradesco will find an old acquaintance from Brazil: Nubank. The company with 2.7 million customers in Mexico. And that base has grown rapidly. In the second quarter, it advanced six times, compared to the same period last year.
At this first moment, Bradesco will use the Bradescard brand. But Monteiro warns that this could be changed in the future. In Brazil, the bank has three brands that operate in this universe: Next, Bitz and Digio.
In a recent interview with NeoFeedOctavio de Lazari Junior, CEO of Bradesco, said that the plan is to unify the three brands, but that he is in no hurry to do so.
“The whole study is already on the table as to how there could be a union of these businesses and where this union would be more adequate and efficient. But that shouldn’t happen even in 2023 or 2024. It’s something that will stay in the future”, said Lazari Junior.