Currently, investments through Fintech companies are experiencing significant growth in Argentina.
According to the Report on Retail Payments by the Central Bank of the Argentine Republic (BCRA), between January and July 2023, balances invested through these platforms increased by 183%.
These virtual wallets offer investment accounts, allowing users to have access to their money at all times for payments or transfers, while earning interest on the invested amount.
This type of account has experienced consistent growth in recent months, reaching a record figure of 183%.
Various Fintech companies currently provide this service, ensuring their users an annual return of over 90% on the balances invested in Common Investment Funds (FCI), through the so-called investment or remunerated accounts.
By July, the money invested by users of virtual wallets on these platforms reached ARS$438.7 billion, nearly tripling the figure of ARS$154.8 billion recorded in January, according to the latest official data released.
On the other hand, deposits from the private sector in traditional fixed-term deposits increased by 48%, rising from an average of ARS$8.03 trillion in January 2023 to ARS$11.93 trillion in July of this year.
“Excluding the effect of the general price increase, which accumulated to 51.16% between January and July, according to Indec, real investment in remunerated accounts through Fintech grew by 87.5% in that period, while fixed-term deposits fell by 1.8% in real terms,” highlighted the Argentine Fintech Chamber in a statement.
In addition to the increase in the invested amount, there has also been an increase in the opening of investment accounts.
According to data from the Argentine Clearing and Registration Chamber SA (Acyrsa), the number of opened investment accounts has significantly increased in the South American country over the last four years, going from 630,000 accounts in July 2019 to 12.8 million in July 2023, with 4 million accounts created so far this year.
“The data reflect how Fintech companies popularized a saving alternative among people who had never accessed the capital market or had few options to invest their money.
“In a few years, millions of users found a way to protect their income and access resources they can now allocate to consumption or any other investment goal,” stated the chamber that represents the main digital financial services companies in the country.