Argentinian mobile banking firm Uala is stepping up its presence in Mexico

Uala, a mobile banking company based in Argentina, recently decided to increase its presence and influence in Mexico. The company announced that it intends to launch a new service — high-yield savings account, which comes only a few weeks after the firm secured a banking license in the country.

The new savings account will allow users to earn an annual yield of 9%. This is expected to attract a lot of attention in Mexico, as a government survey revealed that more than half of the country’s population only saves money informally. Meanwhile, the government’s survey said that four out of ten people save without receiving any yield.

A major move for Uala

Uala managed to secure a banking license in the country’s bank regulator, CNBV, earlier this year, in May. It received authorization to purchase ABC Capital Bank, and with it, it received the banking license that allows it to operate in Mexico. Pierpaolo Barbieri, the CEO of Uala, commented on the move, stating that it represents a major milestone for the company.

He also added that the expansion into Mexico, coupled with the nature of the service, will allow Uala to stand out from other fintechs in the country. Meanwhile, Uala’s Vice President of Wealth Management, Andres Rodriguez Ledermann, also commented on the move. He said, “We are excited to offer options that bridge those gaps by promoting savings in a simple, secure way for everyone, with higher yields than what has historically been seen in the Mexican market.”

Another important move for the company involves striking deals with a number of other major financial firms, which allowed it to send remittances through them. This includes Orlandi Valuta, Western Union, and Vigo.

Mexican financial institutions under pressure to obtain licenses

Obtaining a license was a big move for Uala because non-bank lenders in Mexico are under strong pressure to obtain licenses. That would allow them to lend customer deposits instead of relying on credit markets. Uala will now also have this option available, thanks to the fact that it became a licensed company.

Apart from Uala, another firm has been pouring resources into Mexico recently. The company in question is Brazilian giant Nubank, which recently started offering similar savings accounts. With that being the case, Uala is not exactly without competition.

Even so, its expansion into Mexico also means that Nubank will get a major player as a competitor, which will be beneficial for the users. Uala’s expansion also represents a major step for fintech itself, as it extends its financial ecosystem into a new, relatively unexplored market. Now, it is believed that the launch of a savings account can transform the way Mexicans invest and save their money.