MEXICO CITY : A million other people in Mexico have opened financial savings accounts in Brazilian virtual financial institution Nubank one month after the product’s release, the corporate stated on Wednesday, with deposits amounting to at least one billion pesos ($58 million).

About 90 in keeping with cent of the deposits are being saved in Nubank’s so-called “little packing containers,” a separate area throughout the accounts the place consumers can grasp price range and get a 9 in keeping with cent annual go back, it stated in a observation.

The virtual financial institution’s Mexican arm, referred to as Nu Mexico, ultimate November opened a ready listing for purchasers to enroll in the financial savings accounts, its 2nd monetary product within the nation, and officially introduced it in Would possibly.

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

Nubank introduced a $330 million fairness capitalization for Mexico overdue ultimate yr, in a bid to make bigger 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 other people.

Nevertheless, the contribution of its Mexico operations to Nubank’s overall effects may well be restricted within the quick time period, Citi stated in an research word, mentioning low penetration within the bank card marketplace.

Bank card transaction quantity within the nation quantities handiest to about 20 in keeping with cent of Brazil’s quantity, consistent with Citi knowledge.

The Brazilian lender may be increasing its portfolio in Colombia. The financial institution introduced ultimate month it expects to release virtual checking accounts within the South American nation by way of the tip of 2023.

($1= 17.40 Mexican pesos)

Supply: Reuters