MEXICO CITY (Reuters) – Argentine fintech unicorn Uala said on Wednesday it launched a high-yield savings account in Mexico after getting approval from regulators to acquire Mexico’s ABC Capital Bank and expand operations in the country.
Launching the account at an event in Mexico, Uala said the high-yield account will have a fixed annual interest rate and would pay an annual percentage yield of 9%.
Uala said a Mexican government survey showed that 54% of people in Mexico save informally, and four out of 10 people do not receive any yield on their savings.
“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,” said Andres Rodriguez Ledermann, vice president of wealth management at Uala.
Uala received authorization in late May from Mexico’s bank regulator CNBV to buy bank ABC Capital, which allowed the Argentine firm to move forward with its banking license in Mexico.
The fintech also announced that remittances sent through Western Union, Vigo and Orlandi Valuta can now be received through its app.
(Reporting by Carolina Pulice; Editing by Anthony Esposito and Cynthia Osterman)
