Mexico is rapidly establishing itself as a powerful force in the global financial landscape, boasting the second largest economy in Latin America and the Caribbean. With a GDP of USD 1.821 trillion in 2024, projected to grow to USD 1.847 trillion in 2025, the country is only surpassed by Brazil. This economic strength underpins a financial sector where traditional banks, fintechs and Non-Bank Financial Institutions (“NBFIs”) are all competing to capture a growing market. 

One of the most dynamic areas is wealth management (“WM”). The Head of Investments at a Mexican asset management firm commented, “This is the core of the business. This is where the largest share of Assets Under Management (“AUM”) in Mexico is concentrated.”  

The Mexican wealth management market is projected to reach USD 198.56 billion in 2025, driven by rising affluence and the desire for more sophisticated financial planning solutions. Yet the market also faces unique constraints, as the investment manager highlighted, “53 percent of the economy is informal,” which means a majority of potential clients lack the income stability and documentation to enter the wealth management market in the first place. 

Traditional banks still dominate the landscape thanks to their scale, established trust and comprehensive services. From a competitive standpoint, a key advantage of international banks is that “they can offer offshore accounts, have managers abroad and operate international banking businesses,” noted the source. Many Mexican investors have historically chosen to place their money abroad to diversify their portfolios, particularly the liquid portion and this trend remains strong. 

“So far, traditional banks haven’t lost much ground to fintechs.”

Head of Investments at an asset management firm, Mexico

Meanwhile, fintech platforms are trying to reshape the traditional market. Mexico is the second largest fintech hub in Latin America, with 773 registered companies at the start of 2024, an annual growth of 19 percent. Notably, GBM Plus, a platform launched by GBM Bank, has “become a benchmark for opening up investments to a wider audience,” relayed the Head of Investments. SoftBank invested heavily in GBM Plus, attracted by the vision of democratising investment access. With a minimum entry point of just USD 50, GBM reports a million clients, though the sceptical investment manager pointed out, “How many are truly active? There’s not much capital available in this segment of the population.” 

Digital banks are also multiplying. Santander launched Openbank to appeal to customers outside the traditional banking system, while Banorte created Bineo and Banregio introduced HeyBank. Each of these brands aims to tap into younger, digitally native Mexicans, or those historically underserved by conventional institutions. However, the asset manager observed, “So far, traditional banks haven’t lost much ground to fintechs.” The main reason is that most clients still prioritise old-fashioned trust, personal advice and established brands over newer, fully digital offerings. 

Adding to this complexity is Mexico’s relatively low financial sector penetration. “Financial sector penetration in the population remains low. The market is growing gradually, but it is growing,” remarked a source. Nubank, a Brazilian giant, has expanded aggressively into Mexico, relying more on brand recognition than a fully consolidated strategy. While the goal is to increase financial inclusion in underbanked regions, the source recognised that “this comes with significant risk.” 

“Mexican treasury bonds offer yields of 5-10 percent per year, which is considerable... Why change when returns are already strong?”

Head of Investments at an asset management firm, Mexico

Another factor that dampens urgency to innovate is the strong returns already available on domestic products. For example, “Mexican treasury bonds offer yields of 5-10 percent per year, which is considerable.” The investment manager continued, “From the banks’ perspective, this reduces the urgency to innovate. Why change when returns are already strong?” 

Even with these challenges, the pandemic was a turning point that accelerated digital adoption and shifted consumer expectations. While traditional relationship-based models remain dominant in wealth management, younger and emerging High-Net-Worth Individuals (“HNWIs”) show interest in digital-first platforms that offer transparency and convenience. Yet, the manager pointed out, _“_The market still has a strong family-business-driven component,” which reinforces the importance of personal relationships and institutional reputation. 

In the long run, the most viable path forward will likely be hybrid models. These allow clients to enjoy the convenience of digital tools while preserving the personal touch and expertise of human advisors. Ideally, as the investment head suggested, “The government should play a more active role in the banking segments traditional banks don’t reach.” Until then, Mexico’s financial sector will continue balancing innovation and tradition in the pursuit of growing the greens.