Rate war between Sofipos and digital banks will continue until 2026

So far this year, the Bank of Mexico (BdeM) has reduced the interest rate on three occasions and with this some of the popular financial companies (Sofipos) and banks that operate digitally have begun to reduce the rate of return that they offer in their savings products to their clients.

The so-called rate war and competition to attract the largest number of possible customers through savings products will continue until next year or even until 2026, and as long as the returns of digital financial institutions remain above 8 percent, the competition will continue, he stated. James Salazar, deputy director of economic analysis at CIBanco.

This call guerra It began at the end of 2023, when financial entities such as Nu, Stori, Ualá, Mercado Pago or Hey Banco began to offer their clients return rates of up to 15 percent. These returns attracted attention, as they exceeded inflation levels and were higher than those offered by Treasury Certificates (Cetes).

In April of this year, the Mexican central bank made the first downward adjustment in the reference rate, and it went from 11.25 percent – ​​the highest level since the BdeM aims to control inflation through monetary policy. – to 11 percent. It was the first downward adjustment in the span of a year.

The Brazilian giant Nu, one of the largest competitors in the digital financial ecosystem that operates in Mexico as Sociedad Financiera Popular (Sofipo), began offering returns of 15 percent annually on its savings product in November 2023. However, by April, The yield decreased to 14.75 percent, a level at which it is still maintained and will remain until November 27.

Iván Canales, general director of Nu México, commented on several occasions that the rates of return on this entity’s savings products will depend on the movements that the Bank of Mexico makes in the future.

Stori currently offers a yield of 15.5 percent at an annual rate and will remain in effect until November 30; Mercado Pago, which operates as a fintech and is seeking its banking license, also offers a 15 percent return, which will be maintained until further notice; while Finsus offers a return of 15.01 percent until February.

For its part, last Thursday, Hey Banco, the digital arm of Banregio, informed its clients that as part of the BdeM movements its rate of return decreases from 12.5 to 12 percent as of November 1.

Ualá ABC, the bank that operates digitally, offered until Thursday, October 31, a 15 percent return on its savings product. On Friday morning, the institution announced that the rate had risen to 14 percent.

No changes expected

James Salazar of CIBanco, commented that the guerra of rates has not ended, because despite the cuts that the BdeM has made to the reference rate, we will continue to see other relatively highwhich will encourage competition.

“Despite the cuts that the BdeM has made, this year the rate will probably close at 10 percent and the next at 8.5 percent, so these players will continue to offer attractive returns, even above Cetes; So, we do not expect changes, the panorama is of high rates, not like now, but we will continue with this so-called guerra to seek recruitment.

There is an important niche for these institutions in terms of attracting clients, and it can still be maintained for one or two years; Strictly speaking, rates will remain attractive for savings. Perhaps below 8 percent it will be difficult for the rates to be attractive, but above that 8 percent the average citizen can consider it a good savings optionadded the CIBanco economist.

“We don’t see it as a guerrabut as an opportunity to highlight the differential value that digital entities can offer… During the year we have observed a scenario of lower rates, reflected in the three cuts that the BdeM has made to the reference rate, and it is forecast that this “The trend will continue in the remainder of 2024 and during 2025,” said Pablo Salvodelli, director of wealth management at Ualá.

We have maintained our remuneration rate throughout the year, even in the face of the central bank’s decisions. Our goal is to provide an additional benefit to our users, who find on our platform a digital solution to save and grow their money daily. We have recently adjusted our rate to current levels, but we remain the bank that offers the best yield option for Mexicansadded the director of Ualá in an interview with The Day.