MEXICO CITY : A million individuals in Mexico have opened financial savings accounts in Brazilian digital financial institution Nubank one month after the product’s launch, the corporate stated on Wednesday, with deposits amounting to 1 billion pesos ($58 million).

About 90 per cent of the deposits are being stored in Nubank’s so-called “little packing containers,” a separate area inside the accounts the place prospects can maintain funds and get a 9 per cent annual return, it stated in an announcement.

The digital financial institution’s Mexican arm, generally known as Nu Mexico, final November opened a ready listing for purchasers to join the financial savings accounts, its second monetary product within the nation, and formally launched it in Could.

Nubank, owned by Buffett-backed Nu Holdings, stated it’s now current in 9 out of 10 municipalities in Mexico.

Nubank introduced a $330 million fairness capitalization for Mexico late final yr, in a bid to broaden its footprint within the Latin American nation.

Along with its new financial savings accounts, Nubank has issued 3.2 million bank cards in Mexico, a rustic with greater than 126 million individuals.

Nonetheless, the contribution of its Mexico operations to Nubank’s complete outcomes is perhaps restricted within the quick time period, Citi stated in an evaluation observe, citing low penetration within the bank card market.

Bank card transaction quantity within the nation quantities solely to about 20 per cent of Brazil’s quantity, in response to Citi knowledge.

The Brazilian lender can also be increasing its portfolio in Colombia. The financial institution introduced final month it expects to launch digital checking accounts within the South American nation by the top of 2023.

($1= 17.40 Mexican pesos)

Supply: Reuters