UK-based fintech giant Revolut recently received a banking licence approved by Mexico's National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores), bullishly looking at the possibility of expansion in the cross-border remittance market and allowing the company to set up a bank in Latin America, according to reports.

In a statement, the company said, "This licence will allow Revolut to offer a wide range of financial products and services to users in Mexico, and it is currently preparing for a third-party audit following the launch of its operations in Mexico."

The lucrative cross-border remittance market

In Mexico, Revolut's focus will be on providing cross-border remittance services to local customers. It's a lucrative market, in fact, as remittances to Mexico are set to jump 8 per cent to a record $63.3 billion by 2023, with the majority coming from the US.

Revolutal also operates in the European Economic Area, having obtained a banking licence from Lithuania's central bank. On UK soil, the company holds a payment institution licence as its application for a banking licence in the UK is being processed.

Last November, the company created a new CEO position for its UK division, which has applied for a local banking licence.

Growing customer base

In addition to its banking licence, Revolut holds approximately 50 other regulatory licences globally and has more than 40 million customers worldwide.

Meanwhile, Revolut expects to achieve revenues of $2 billion in 2023, with double-digit net profit margins. in 2022, the company reported revenues of $1.1 billion, a 45 per cent increase over the previous year.

Nik Storonsky, Revolut's CEO, said, "In 2022, Revolut broke away from its competitors and the focus going forward is on continued growth in all markets."