Covalto Targets SME Financing and Nearshoring Opportunities in Mexico

Mexico City, Mexico – March 12, 2026 – Digital bank Covalto is strategically positioning itself to develop into a leading financial institution for small and medium-sized enterprises (SMEs) in Mexico, with a particular focus on capitalizing on the nearshoring trend. The bank, founded in 2015, is leveraging technology to offer competitive rates and streamlined services to a traditionally underserved market.

Focus on the Underserved SME Market

Despite representing a significant portion of Mexico’s business landscape, SMEs have historically faced challenges accessing adequate financial services from traditional banks. Covalto aims to fill this gap by providing tailored financial solutions, according to Mark McCoy, the bank’s Chief Executive Officer. “Though it represents a relevant part of the business fabric in Mexico, this segment has been largely underserved by traditional banking,” McCoy stated in a recent press conference.

Technology as a Competitive Advantage

Covalto’s strategy centers on utilizing technology to reduce operational costs and improve financing conditions for its clients. Sergio Arias, President and CEO of Covalto, explained that technology “is an enabler that allows us to reduce costs and offer better rates. We apply it for transactional processes, while the bank focuses on personalizing the relationship with each client.” The bank has also strengthened its digital capabilities to efficiently process financial and fiscal information, facilitating quicker credit risk assessments.

Strong Growth in Lending and Deposits

Covalto has demonstrated robust growth in recent years. In 2025, the bank’s credit portfolio increased by 51% annually, while deposits grew by 53% compared to the previous year. This growth is attributed to its focus on digital efficiency and competitive offerings, such as high-yield promissory notes (“Estrella” products) with rates exceeding Cetes, made possible by its low operating costs due to the absence of physical branches.

Capitalizing on Nearshoring

Covalto is actively targeting opportunities arising from the nearshoring phenomenon, particularly in northern Mexico. Approximately 40% of the institution’s portfolio is concentrated in states with strong industrial activity, including Nuevo León, Sonora, Baja California, and Sinaloa, where supply chains are being strengthened. McCoy noted that while there was a temporary slowdown, appetite for investment is returning, and the continuation of the USMCA (T-MEC) agreement is expected to further boost growth. The bank is expanding financing to SMEs that supply large international companies operating in Mexico.

Opportunity in a Changing Market

Covalto is also observing the situation with Intercam and CIBanco as a potential “window of opportunity” to acquire new business and clients. Mark McCoy, Covalto’s Director General, recognizes this as a chance to expand into areas like financing, credit, deposit-taking, and trust services.

National Coverage and Sector Focus

Covalto’s national coverage is distributed across Mexico, with approximately 40% in the metropolitan area, 35% in the north, 20% in the west, and the remainder in the south and southeast. The bank is focusing its expansion on key sectors including services (including non-bank financial intermediaries like Sofomes), commerce, transportation, construction, manufacturing, and the agri-food chain.

According to figures from the National Banking and Securities Commission, the Mexican banking system recorded profits of 304.4 billion pesos at the end of 2025, with institutions like Covalto, Consubanco and Multiva showing significant growth.