Introduction to Invex Banco and its New Partnership
In Mexico, Invex Banco, Amazon, and Mastercard have formed a groundbreaking alliance, positioning themselves as pioneers in digital financial solutions. This collaboration marks the introduction of a novel figure within Mexico’s financial system: the Base Technology Commissioner.
Who is Invex Banco?
Invex Banco, led by Jean Marc Mercier, is a specialized financial services provider in the Mexican banking sector. Though not among the largest banks like BBVA, Citibanamex, Santander, or Banorte, Invex distinguishes itself through its focus on high-value financial services and innovative products that promote financial inclusion.
What is a Base Technology Commissioner?
In July 2024, a resolution was published in the Federal Register to expand access to banking services and products through digital channels. This resolution enabled credit institutions to hire Base Technology Commissioners to offer banking services to the general public via digital platforms.
A Base Technology Commissioner is a company that, through digital platforms, can offer and execute various banking services on behalf of credit institutions for the general public. This includes account openings, money transfers, and bill payments through websites or mobile apps of external companies to traditional banks.
The Invex-Amazon-Mastercard Partnership
Under this alliance, Amazon – the world’s largest retail platform and cloud computing service provider at all levels – along with Invex Banco and Mastercard, will offer Mexican customers a debit card enabling digital payments.
Currently, the product is being tested with a limited number of clients. Soon, Amazon Access will be available to anyone interested in applying.
Amazon Access: A New Financial Product
Amazon Access is a new financial product that allows customers to manage their money freely through the Amazon shopping app. Users can pay, transfer, and receive funds wherever and whenever they want.
Through the Amazon shopping app, customers can open an Amazon Access account issued by Invex Banco without minimum balance requirements, annual fees, or transfer charges. Users just need to download the app, fill out a form within the app, and start managing their account.
Moreover, customers can shop outside Amazon using their digital card or by requesting a free Invex-Mastercard physical card for purchases elsewhere.
Impact on Financial Inclusion in Mexico
Amazon Access will enable more unbanked individuals in Mexico to benefit from the digital economy. This partnership marks the first instance of a Base Technology Commissioner in Mexico’s financial history, signaling the country’s commitment to digitalization and maximizing financial inclusion.
Additional Context: Potential Price Controls
Price Control Discussions
Francisco Cervantes, the leader of the Mexican Employers’ Coordinating Council (CCE), recently mentioned discussions with the government about setting price caps on additional consumer goods. Cervantes acknowledged that some industries lack profit margins, but maintaining inflation stability is crucial.
According to media reports, Cervantes stated that the government and private sector are analyzing the possibility of agreeing on maximum price limits or price caps for new consumer goods to strengthen the domestic market amidst Mexico’s economic slowdown.
So far, the federal government has negotiated agreements with the private sector to stabilize prices of essential goods like liquefied petroleum gas (LPG), Magna gasoline, and a basket of 24 essential items.
Recently, the federal government reached an agreement with corn millers and tortilla distributors to reduce corn tortilla prices by 5% for the remainder of the year and aim for a 10% reduction by 2030.
While inflation concerns are valid, the effectiveness of price controls remains questionable.
