Mexican neobank Ualá has tapped DriveWealth’s fractional investing infrastructure to launch “Acciones,” enabling Mexican prospects to spend money on US shares.
The providing goals to broaden funding entry in Mexico, the place solely 4.4% of the inhabitants at the moment invests in monetary devices.
For DriveWealth, the partnership continues to broaden the attain of its brokerage infrastructure throughout Latin America.
Latin American neobank Banco Ualá has chosen digital buying and selling and brokerage firm DriveWealth for its new launch known as Acciones (Shares) that can allow Mexican consumes to spend money on US equities.
Leveraging DriveWealth’s brokerage-as-service platform that permits for fractional investing, Ualá permits customers to spend money on company shares beginning at $1.12 ($20 MXN), enabling Mexican buyers to personal shares of corporations like Apple, Amazon, and Tesla.
This new accessibility is an enormous deal in Mexico, a area by which solely 4.4% of the inhabitants at the moment invests in any monetary instrument. This low participation price is partly as a result of perceived complexity of investing and the idea that investing is simply obtainable to these with vital capital. Nevertheless, due to DriveWealth’s fractional investing infrastructure, Ualá can now permit prospects to buy fractions of US equities. This not solely lowers barriers-to-entry, however it additionally permits buyers to construct diversified portfolios with smaller quantities of capital.
For DriveWealth, the launch is proof of world demand for funding entry to new markets. By powering fractional US inventory investing for Ualá in Mexico, the corporate continues to broaden the attain of its brokerage infrastructure throughout Latin America.
“DriveWealth was constructed to democratize entry to monetary independence and broaden entry to monetary markets by way of trusted, regulated brokerage infrastructure,” mentioned DriveWealth CEO Naureen Hassan. “Partnering with Ualá permits us to convey US equities to a broader inhabitants of buyers in Mexico by way of a safe, fractional investing expertise. We’re dedicated to working collectively to supply modern funding options to Ualá prospects, and serving to make investing easy and inclusive, whereas sustaining the best requirements of execution, custody, and investor safety.”
Ualá’s Acciones (Shares) onboards customers after they reply a collection of questions to find out their threat profile and obtain portfolio suggestions. Buyers can have the selection of three portfolio choices, together with US shares and ETFs. To make investing much more approachable, the neobank is not going to cost any account opening or transaction charges.
“With the launch of Acciones, we’re opening the doorways of the worldwide market to hundreds of thousands of Mexicans who beforehand noticed these alternatives as unattainable,” mentioned Ualá Regional Director of Wealth Administration Pablo Savoldelli. “Now, ranging from 20 pesos and with simply a few clicks, our shoppers will have the ability to defend their financial savings, acquire dividends, and take part within the progress of the world’s largest corporations.”
Ualá’s transfer is an instance of how digital banks are increasing past funds and into broader monetary instruments akin to lending and wealth-building. As extra neobanks search to deepen buyer relationships and enhance engagement, providing funding entry is a pure subsequent step.
DriveWealth was based in 2012 to permit third events to allow entry to US equities, fastened earnings, and different asset courses by way of scalable, compliant options through its suite of APIs. Final yr, the New York-based firm teamed up with Second Expertise to make fixed-income investing extra accessible to a broader vary of buyers, and partnered with Walmart’s OnePay to energy the neobank’s embedded investing device.
Photograph by Erol Ahmed on Unsplash
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