Mexican neobank Ualá has tapped DriveWealth’s fractional investing infrastructure to launch “Acciones,” enabling Mexican clients to put money into US shares.
The providing goals to increase 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 increase 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 put money into US equities.
Leveraging DriveWealth’s brokerage-as-service platform that enables for fractional investing, Ualá permits customers to put money into company shares beginning at $1.12 ($20 MXN), enabling Mexican traders to personal shares of firms like Apple, Amazon, and Tesla.
This new accessibility is a giant deal in Mexico, a area wherein solely 4.4% of the inhabitants at the moment invests in any monetary instrument. This low participation charge is partly because of the perceived complexity of investing and the belief that investing is barely accessible to these with important capital. Nonetheless, because of DriveWealth’s fractional investing infrastructure, Ualá can now permit clients to buy fractions of US equities. This not solely lowers barriers-to-entry, but it surely additionally permits traders to construct diversified portfolios with smaller quantities of capital.
For DriveWealth, the launch is proof of worldwide demand for funding entry to new markets. By powering fractional US inventory investing for Ualá in Mexico, the corporate continues to increase the attain of its brokerage infrastructure throughout Latin America.
“DriveWealth was constructed to democratize entry to monetary independence and increase entry to monetary markets via trusted, regulated brokerage infrastructure,” mentioned DriveWealth CEO Naureen Hassan. “Partnering with Ualá permits us to deliver US equities to a broader inhabitants of traders in Mexico via a safe, fractional investing expertise. We’re dedicated to working collectively to supply revolutionary funding options to Ualá clients, and serving to make investing easy and inclusive, whereas sustaining the very 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 may have the selection of three portfolio choices, together with US shares and ETFs. To make investing much more approachable, the neobank won’t cost any account opening or transaction charges.
“With the launch of Acciones, we’re opening the doorways of the worldwide market to tens of millions 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 be capable to defend their financial savings, get hold of dividends, and take part within the progress of the world’s largest firms.”
Ualá’s transfer is an instance of how digital banks are increasing past funds and into broader monetary instruments similar to lending and wealth-building. As extra neobanks search to deepen buyer relationships and improve engagement, providing funding entry is a pure subsequent step.
DriveWealth was based in 2012 to permit third events to allow entry to US equities, mounted earnings, and different asset lessons via 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 traders, and partnered with Walmart’s OnePay to energy the neobank’s embedded investing instrument.
Photograph by Erol Ahmed on Unsplash
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