Obstacles to profitability of medium-sized banks warned

In Mexico, BanBajío manages companies of various sizes and is the largest mid-sized lender in a country with countless niche and single-product banks. Credit: Bloomberg.

A group of 16 mid-sized and niche banks in Mexico and Latin America, including BanBajío and Banco Azteca, face "fierce" competition from financial technology companies that could hinder their growth and future profitability, Moody's Ratings warned in a new report.