Introduction to Low Investment Penetration in Mexico
According to official data, less than 11% of Mexicans have an investment account. With a population exceeding 125 million, only about 13 million investment contracts exist in Mexico, while in developed economies like Canada, this proportion can surpass 100% of the population. Luis Ángel Rodríguez Amestoy, General Director of Investment Funds at BBVA Mexico, highlighted this low penetration rate in an interview with El Economista.
BBVA Invest: A Technological and Educational Approach
To reverse this low penetration, BBVA Mexico is betting on technology and financial education with the launch of BBVA Invest, an integrated feature within their mobile application.
BBVA Invest: Simplifying Access to Investments
Rodríguez Amestoy explained that BBVA Invest aims to bring investments closer to everyone. It is a solution allowing clients to answer seven questions to identify their investment profile and receive an appropriate portfolio recommendation based on that.
- Digital Profiler: The digital profiler, now available in the opportunities section of the app, evaluates whether a client is conservative, traditional, moderate, or aggressive. Based on this, it constructs a portfolio of three investment funds combining liquidity, fixed income, and variable income both nationally and internationally. All this with a minimum entry amount of 1,000 pesos.
- No Expertise Required: By answering seven questions, the system designs and manages a portfolio for you.
- Understanding Risk Profiles and Investment Goals: While determining your risk profile is important, knowing the purpose of your investment is equally relevant. Saving for your child’s university next month differs significantly from saving for retirement in 20 years, as Rodríguez Amestoy advised.
Automated Portfolio Management and Real-time Monitoring
Automation plays a crucial role in BBVA Invest. The platform automatically rebalances portfolios according to market conditions without requiring user intervention. Moreover, the platform allows users to monitor investment performance in real-time through the mobile app.
Current Mexican Market Environment
Regarding the current state of the Mexican market, Rodríguez mentioned that investment funds remain highly concentrated in short-term debt instruments. Although this was an attractive alternative due to high yields in recent years, there are now more opportunities beyond this. Thus, digital advisory is needed to better guide investors.
BBVA’s Investment Offerings and Commitment to Inclusion
BBVA has over 25 million mobile users but only 1.3 million participate in investment funds, representing a significant opportunity. Their goal is to make more people see investment funds as a secure and profitable way to grow their money, Rodríguez stated.
BBVA offers a wide range of 55 investment funds through its fund manager and has developed thematic products like a digital fund. They also incorporate ESG (environmental, social, and governance) criteria into their portfolios. In terms of artificial intelligence, BBVA Mexico has been using quantitative models for years to improve portfolio construction efficiency.
Regulatory Events and Client Security
Rodríguez addressed recent regulatory events involving other operators, emphasizing the system’s solidity. He stressed that investment funds are heavily regulated and separate from the bank’s balance, ensuring clients always have liquidity and security over their money. Authorities are acting to protect investors, he added.
Key Questions and Answers
- What is BBVA Invest? BBVA Invest is a digital tool integrated into the BBVA Mexico mobile application that helps users create a personalized investment portfolio based on their risk profile and financial goals.
- How does it work? Users answer seven questions about their investment preferences, and the system generates a customized portfolio of three funds tailored to their risk level (conservative, traditional, moderate, or aggressive).
- What makes BBVA Invest unique? It simplifies the investment process, requiring no prior expertise. The platform also automatically rebalances portfolios according to market conditions and allows real-time monitoring of investments.
- Why is BBVA focusing on financial inclusion? With only 11% of Mexicans having investment accounts, BBVA aims to make investments more accessible and understandable for the general population.
- How secure are my investments with BBVA? Investment funds are heavily regulated and separate from the bank’s balance, ensuring clients always have liquidity and security over their money.
