Summary: Mexican financial startup Stori is launching a savings account with a high yield of 15% to compete with other digital banking firms targeting the unbanked population in Mexico.
Mexican fintech startup Stori has introduced a new savings account with a significantly high yield of 15%, aiming to attract Mexicans who do not have traditional bank accounts. This move is in response to increasing competition among digital banking firms targeting the unbanked population in Mexico. Stori’s offering is expected to be the highest-yielding account in the local financial sector, according to data from Mexico’s financial products watchdog Condusef.
Other Latin American fintech companies, such as Brazil’s Nubank and Argentina’s UALA, have also launched savings accounts in Mexico this year. Official data shows that less than half of the Mexican population currently has savings accounts. Stori, which reached a valuation of at least $1 billion in 2020, has previously focused on offering credit cards to the unbanked population, making the new savings account part of its efforts to provide financial services to individuals outside the traditional banking system.
To open a Stori savings account, individuals need to join a waiting list that opened on Wednesday, and the first accounts will be opened at the end of October. The Bank of Mexico has set its benchmark interest rate at 11.25%. In comparison, Nubank and UALA offer 9% yields on their savings accounts, which are already higher than those offered by most banks. Stori’s recent acquisition of financial firm MasCaja has allowed it to broaden its product portfolio.
Nubank’s Mexico unit has gained over a million customers since launching accounts in May. Stori has set a target of reaching three million savings account holders by the end of next year, according to Sergio Duenas, the company’s General Manager of New Products.
Tags: Mexican fintech, Stori, savings account, high yield, digital banking, unbanked population, competition, financial services, Nubank, UALA