Mexican Fintech Stori Introduces High-yield Savings Account

Published 6 months ago

Mexican financial startup, Stori, has started offering a savings account with a notably high yield of 15%. This initiative marks an increase in competition among digital banking firms, aiming to attract Mexicans without bank accounts.

The accounts, according to data from Mexico’s financial products watchdog Condusef, are the highest-yielding ones offered in the local financial sector.

Stori’s Competitive Edge

Stori has previously offered credit cards for the unbanked with credit limits starting at 500 pesos ($28). This strategy is notable in a country where approximately only a third of adults have any form of consumer loan.

The new savings account offering aims to serve individuals outside of the traditional banking system. Marlene Garayzar, the company’s co-founder, described the initiative as “making a product typically for rich people, popular and democratic.”

High-Yield Savings Accounts in Mexico

Stori’s new offering comes amidst other Latin American fintechs like Brazil’s Nubank and Argentina’s UALA launching savings accounts in Mexico. This is a significant move considering less than half of the Mexican population has savings accounts, as per data from the national statistics agency.

The Bank of Mexico has its benchmark interest rate set at 11.25%. Meanwhile, the Mexican branches of Nubank and UALA both offer 9% yields on their savings accounts, considerably higher than most banks.

Stori’s Growth and Future Plans

The introduction of the new savings account follows Stori’s acquisition of financial firm MasCaja. This acquisition provided Stori with a new license to expand its product portfolio.

Stori, which achieved a valuation of at least $1 billion last year and hence the unicorn status, plans to reach 3 million savings account holders by the end of next year, according to Sergio Duenas, its General Manager of New Products.