By Cassandra Garrison
MEXICO CITY (Reuters) – Brazil’s Nubank, Latin America’s star financial technology firm, began launching Mexican savings accounts on Wednesday as it looks to scoop up market share in a country where more than half of people do not have such accounts.
The digital bank’s Mexican arm, known as Nu Mexico, opened a waiting list for the savings accounts, which will roll out in stages with first access going to current clients and members of the company’s digital forum Comunidad Nu.
The bank will also launch a Mexican debit card for customers to withdraw cash from ATMs.
Backed by investors including Warren Buffett’s Berkshire Hathaway, Nubank was founded in Brazil in 2013 to offer consumers a no-fee credit card. Nu Mexico started operating three years ago and has three million clients in the country.
Company executives did not specify when the accounts would be more widely available in Mexico but said early holders would be invited to offer feedback to help shape the strategy.
The savings accounts, which will not require a minimum balance, will be completely digital, a feature executives hope will entice Mexicans who do not have savings accounts, particularly those in rural areas far from physical branches of traditional banks.
“For folks that have never had a savings product before, this type of digital solution with Nu’s formula of great customer support will also be a compelling value proposition,” Ivan Canales, General Director of Nu Mexico, told Reuters in an interview.
(Reporting by Cassandra Garrison; Editing by Josie Kao)
