Cetes vs Fintechs: This is how the race for savings moves in Mexico

This is how the gap opens between the performance of Cetes and fintechs

In the last year, platforms such as Mercado Pago, Nu and Stori have adjusted their strategies to differentiate themselves from traditional options such as Cetes.

Mercado Pago, for example, has maintained a yield rate of 15% annually since July 2023, making it one of the most attractive for demand deposits. For its part, Nu reduced its yield to 12.5% ​​in November 2024, aligning with the decrease in the Equilibrium Interbank Interest Rate.

Stori, with its Account+ and Investment+, offers rates of up to 15.5% on 365-day fixed-term deposits, but slightly reduced the “sight money” rate.

In contrast, the Cetes Directo platform has tightened its policies: as of December 1, 2024, the minimum amount for recurring investments increases from 100 to 300 pesos, and the minimum term goes from 28 to 90 days.

This occurs at the same time that the Cetes finally lowered their yield below 10%, for the first time in several months. The performance gap with options such as Mercado Pago and Stori is widening, although Nu has decided to follow the logistics of monetary policy adjustments.

The cost for Mercado Pago and Nu of attracting customers

Mercado Pago reported 35% growth in active users during the third quarter of 2024, reaching 56 million. However, this expansion increased operating costs, especially in credit and logistics. Despite the expenses, the strategy strengthened its customer base in Latin America.

“This fintech was the first digital account to offer returns to its users thanks to a partnership with GBM since 2020. Since January 2023, the rate has been above 10% and as of July of this year, it increased to 15% for a additional benefit that we offer to our millions of users,” the company told Expansión.

In the case of Nu, the high rates offered by its Cajitas in Mexico negatively impacted its net interest margin, which decreased 140 basis points in the last quarter. The financial effort could have been worth it, as they gained 1.2 million customers in the third quarter of 2024, in Mexico alone.

“NIM compression in the quarter was primarily driven by a combination of three factors. First, credit card portfolio yields declined reflecting lower product risk and customer mix; second, , loan yields decreased due to the increasing mix of secured loans in the portfolio; and third, “funding costs were pressured by increased deposits in Mexico and Colombia, in line with our deposit rate strategy in new geographies,” the company noted in its latest earnings report.

The outlook for interest rates

Monex predicts that the Bank of Mexico will continue to cut its reference rate in 2025, with a closing estimate of 8%. This scenario could generate adjustments in the rates offered by fintech companies, since many of them take Banxico’s rate as a reference.

On the other hand, Cetes, despite being low-risk instruments, face the challenge of competing with the aggressiveness of fintech. In 2024, its yield went from 11.29% in January to 9.90% in December, reflecting the downward trend in interest rates.