Mexico FinTech News
Ualá, Nu, Hey Banco competing for deposits
Competition for bank deposits in Mexico is finally benefiting savers, but at what cost to financial margins of neo-banks? With the acquisition of bank ABC Capital finalized, Ualá announced that it would offer 9% annual returns on savings accounts with minimum deposits of 100 pesos, following Nu which is also offering depositors 9% in its SOFIPO-regulated accounts, and Hey Banco which offers a 10% deposit yield to users of its cards, with certain limitations. Ualá CEO Pierpaolo Barbieri said that the move was intended to challenge the idea that you must have a large amount of money in a bank account to receive a return. While clearly a positive that some Mexican bank deposit yields are finally reflecting market rates, for a long time Mexicans have been able to invest in Cetes, government promissory notes, with as little as 100 pesos through Cetes Directo. While the service has been categorized by some failures on its website and app, AUM in Cetes Directo has grown rapidly as overnight rates have climbed to the current 11.25%. Expansión, 06/07/2023, Luz Elena Marcos: ¿Competencia a los Cetes? Ualá ofrece rendimientos del 9% en cuenta de débito
Nu continues to grow in Mexico and restructures in Brazil
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