Background on Invex and its Strategic Alliances
Invex, one of the leading credit card issuers in the country, has built its prominence through various strategic alliances. Recently, Invex closed a new agreement with Walmart de México, the country’s leading retail chain. This partnership aims to double the number of credit cards issued by Invex in the medium term, expanding from 1.5 to 3 million cards.
Invex’s Current Standing
Currently, Invex serves over 1.5 million credit card customers through alliances with airlines like Volaris, furniture retailer Ikea, travel portal Despegar, and football club Manchester United. Jean-Marc Mercier, Invex’s CEO, explained that the new partnership with Walmart will add at least another 1.5 million customers, though he clarified that this growth will occur over the medium term without specifying a particular timeframe.
Importance of Walmart Partnership
Mercier highlighted Walmart’s global significance as a retail leader, emphasizing the importance of this new alliance for Invex. He described it as a “privileged match” between two industry leaders, benefiting both Invex and Walmart.
Invex’s Strategy Over the Past Decade
Mercier explained that Invex’s strategy of targeting customers where financial products are needed, rather than bombarding them from the outside, has been in place for the past decade. This approach has consolidated their strategy and proven to be the right decision, as they are now poised to reach millions of customers daily with their offerings.
Positive Outlook for Grupo Financiero Invex
Mercier reported that Grupo Financiero Invex is performing exceptionally well this year, with significant growth expected. He mentioned that the bank will see more than 25% growth in profits, attributing their success to their adaptive technology and diverse business portfolio, including fiduciary services, corporate banking, private banking, digital banking (Now), and co-branded businesses.
Responsible Growth Amidst Industry Expansion
With the recent surge in credit card issuance by new players, particularly technology-based companies, Mercier expressed concern about some lending practices. He noted that while new entrants have identified customer needs, their high moratorium rates are worrisome. Invex, with its growth in both cards and receivables, maintains better moratorium rates.
Key Questions and Answers
- What is Invex’s current credit card customer base? Invex currently serves over 1.5 million credit card customers.
- What is the goal of Invex’s new alliance with Walmart? Invex aims to double its credit card issuance from 1.5 million to 3 million in the medium term.
- What makes this Walmart partnership significant for Invex? Walmart’s global retail leadership and Invex’s strategic focus on reaching customers where financial products are needed make this alliance crucial.
- How has Invex’s strategy evolved over the past decade? Invex has maintained a customer-centric approach, targeting those in need of financial products rather than mass marketing.
- How is Grupo Financiero Invex performing this year? The group is on track for record-breaking performance, with more than 25% growth in profits.
- What concerns does Invex have regarding the recent growth in credit card issuance by new players? Invex is concerned about some new entrants’ lending practices, citing high moratorium rates as a potential red flag.
