Boasting close to 500,000 customers throughout Mexico and a network of 30,000 retail outlets enabling deposit acceptance through representatives, the innovative bank albo is rapidly establishing itself as a leading force within Mexico’s developing fintech sector.

Recently, the company secured an additional $45 million in funding to further strengthen its market standing.

“Achieving the goal of becoming Mexico’s largest bank requires substantial financial resources,” explained Angel Sahagún, albo’s founder.

Having obtained a license to function as a fully authorized depository bank in Mexico, the company is progressively working towards becoming the primary online financial services provider for Mexico’s expanding middle class, as stated by Sahagún.

“Our intended customer base closely resembles that of Chime,” the albo founder and CEO noted. “We are focused on serving individuals who are underserved by traditional banking and lack comprehensive access to financial products.”

Sahagún indicated that the new capital will be allocated to broadening the scope of albo’s offerings to include lending and insurance services. This strategy mirrors the success of Nubank, a highly successful Brazilian fintech company that has paved the way for a new wave of Latin American startups.

While numerous challenger banks in the area have concentrated on affluent and upper-middle-class customers, Sahagún emphasized that his company has adopted a distinct approach.

The company aims to integrate middle and lower-income Mexican consumers into the formal banking system by facilitating a seamless transition from cash-dependent practices to digital solutions. “In a market where 90% of transactions are conducted in cash, a compelling value proposition tailored to that cash-based environment is essential,” Sahagún said.

To facilitate this, the company has established a network of 30,000 locations, including convenience stores and pharmacies, allowing customers to make deposits at familiar and convenient places.

This expansion, coupled with a reported 40% share of the digital banking market in Mexico, according to data from Apptopia as referenced by the company, attracted investment from firms such as Valar Ventures, Greyhound Capital, Mountain Nazca and Flourish Ventures as part of the $45 million funding round.

“albo has demonstrated a consistent ability to achieve sustainable growth and currently leads the market. We are confident this team will revolutionize banking in the region and are pleased to provide our support,” commented James Fitzgerald of Valar Ventures in a press release.