The steady growth of the Fintech sector in Mexico since 2020 has positioned the country as the second-largest market in Latin America, with around 1,000 fintech companies operating in the country. This growth stems from the need for greater financial inclusion, the digitalization of financial services, and the increasing demand from users for more efficient, faster, and more accessible financial services—filling a gap in the financial market that had not been addressed by traditional banking services. In this context, banks have sought to acquire fintech companies to meet the technological needs of users within the Mexican financial system. As a result, mergers and acquisitions have become a key strategy to adapt their business models, remain relevant, and foster growth.
Consequently, there has been a significant increase in mergers and acquisitions in the financial sector, with traditional entities acquiring fintechs to gain access to new technologies such as blockchain, digital banking, and electronic payments. In Mexico, according to the Finnovista Fintech Radar México 2025, 56 M&A deals were completed in 2023 and 50 in 2024, with venture capital investments of $825 million and $865 million, respectively.
The relationship between traditional banks and fintech companies has evolved into a more strategic collaboration. Carlos López-Moctezuma, CEO of BanCoppel, mentions that his institution has invested in several fintech firms and established partnerships to jointly offer financial services, such as mortgage loans that incorporate technology from fintech providers. This collaboration not only enhances the digital experience but also broadens the range of financial services available to customers.
Among the most notable transactions is the acquisition of Banco Autofin México by the Mexican tech platform Kapital, for US$50 million. This deal allowed Kapital to expand its product offering with online services, technology and artificial intelligence solutions, promoting digital payment methods. Similarly, Arrenda, a proptech company offering digital loans for the real estate sector, was acquired by the financial firm Ziff with the aim of strengthening its lending model through the implementation of Arrenda’s technology and automation model, allowing it to diversify its range of financial products.
At the international level, according to Deloitte’s article “2022 Banking and Capital Markets M&A Outlooks,” the fintech sector reached its peak in M&A activity in 2021, generating the highest number of transactions and attracting the most investment of the year, surpassing even e-commerce. During 2022 and 2023, several major acquisitions took place, starting with Goldman Sachs’ $2.2 billion purchase of GreenSky, an online lending platform, with the aim of strengthening its online presence and becoming the consumer banking platform of the future. Also noteworthy are the acquisitions made by the British bank Lloyds Banking Group PLC, including Embark, a wealth management platform, and Cavendish Online, a digital insurance agency. Finally, Capital One completed 15 fintech acquisitions, including TripleTree LLC, an investment banking and strategic advisory platform.
In 2024, the fintech sector recorded approximately 859 transactions globally, reflecting increased consolidation through M&A as a strategy used by fintechs to gain market share. Fintech companies focused on artificial intelligence were the main targets in the M&A market, as buyers sought to optimize their processes with advanced and efficient analytics. Among the year’s megadeals included the proposed acquisition of Discover Financial Services by Capital One for $35.3 billion, the merger of Guotai Junan Securities with Haitong Securities for $14.5 billion, and the proposed merger between BBVA and Banco Sabadell for $13.4 billion. However, venture capital investment—despite playing a key role in the sector—declined by 29.1% year-over-year, reaching USD 63.4 billion, indicating a more selective investment approach.
Regarding projections for 2025, despite the uncertainty caused by geopolitical tensions, global economic conditions, and regulatory challenges, a continued consolidation of mergers and acquisitions in the sector is anticipated, with a trend toward larger transactions. In this regard, according to PwC’s “28th Annual Global CEO Survey January 2025”, “76% of financial services CEOs who completed a significant acquisition in the past three years plan to make one or more acquisitions in the next three years.” In this context, it is expected that private equity firms will seek to acquire fintech companies to strengthen their presence in the financial services sector, particularly in the areas of advisory and investment.
In Mexico, fintech companies are expected to create opportunities for mergers and acquisitions, particularly in the areas of digital payments, digital lending, and business management and analytics, as companies seek to access new markets, develop new digital financial products, and enhance operational efficiency. This forecast is supported by the international experience of many fintech founders and the acceleration of financial digitalization, positioning Mexico as a regional leader.
A potentially relevant transaction in this environment is the possible sale or merger of Bineo, Banorte’s digital bank. In this regard, Banorte’s CEO confirmed the existence of interested parties and stated that the sale or merger of Bineo is part of a new comprehensive digital strategy driven by hyper-personalization. He also mentioned that this strategy includes the full acquisition of RappiCard, with the goal of transforming it into a multi-product platform with greater value.
However, challenges remain for the fintech sector in Mexico, including a shortage of specialized talent, which has led to significant wage inflation, and changing investment conditions that require fintech companies to demonstrate a strong ability to generate sustainable revenue.
In addition, the regulatory framework in Mexico represents an obstacle for the development of the sector. According to surveys conducted by the FinTech Mexico Association, 43% of companies consider the current regulation to be inadequate, mainly due to the high costs associated with regulatory compliance and the lack of regulatory updates. Moreover, the existing regulations impose significant barriers, such as disproportionate requirements for obtaining authorizations, restrictions to participate in the equity of fintechs as they are subject to the direct and indirect shareholder identification regime, limitations on contracting schemes with third parties and agents, restrictions on operating with virtual assets, and the absence of specific regulation on open banking and APIs.
For Mexico to fully harness the transformative potential of the fintech ecosystem, it will be essential to build a more modern, flexible, and risk-proportionate regulatory framework—one that promotes innovation without compromising financial stability, and that reduces the unnecessary burdens currently hindering the sector’s growth.
REFERENCES
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Daniela Falcón Rangel
