Hey Banco’s Journey Towards Independence from Banregio Extends to December

Mexican bank Banregio’s digital arm, Hey Banco, will not achieve full independence until at least December this year, extending its journey toward operational autonomy.

Initially announced in February 2020, Hey Banco sought independence from Banregio to expand its digital retail banking services.

In July 2023, Hey Banco received a banking license from Mexico’s National Banking and Securities Commission (CNBV), a milestone in its quest for autonomy. This license allowed Hey Banco to function as a separate banking institution, leading to plans for the development of Hey X, a new investing app for US fractional shares.

However, the path to separation has proven to be more complex than anticipated. Beyond regulatory hurdles, Hey Banco has encountered technical challenges as well.

Enrique Navarro, director of finance and planning at Hey Banco’s holding company, Banco Regional, discussed the journey’s progress in an interview with El CEO this month. Navarro revealed ongoing efforts to secure approvals from regulatory bodies such as CNBV and Banco de México, particularly for providing services of public economic interest (SPEI) and incorporating banking correspondents.

Navarro indicated that Hey Banco anticipates completing these processes by the end of the year, aiming to commence separate operations by December or early 2025.

During Banco Regional’s Q3 earnings call last year, Navarro emphasised Hey Banco’s independence as the group’s primary objective, a goal that remains on track and is already in motion.

As Hey Banco continues its journey toward independence, it navigates the complexities of regulatory compliance and technical integration, poised to offer enhanced digital banking services to its customers.