Technology-based broker: Invex and Amazon, pioneers

“He who strikes first strikes twice” goes the popular saying, referring to the advantage of acting quickly and decisively.

And that's exactly what Invex Bank, Amazon, and Mastercard are doing in Mexico, as they begin a novel alliance.

Invex became the first Technology-Based Broker in Mexico, with the endorsement of the National Banking and Securities Commission (CNBV).

Together, they are launching Amazon Access, a digital financial solution that reinforces their commitment to innovation.

Led by Jean Marc Mercier, Invex Banco is a significant but niche player in the Mexican banking system.

Although it is not among the country's largest banks (such as BBVA, Citibanamex, Santander, or Banorte), it stands out for its specialized focus on high-value financial services and its contribution to financial inclusion through innovative products.

With this alliance, Invex, Amazon, and Mastercard launch a new position in Mexico within the financial system: Technology-Based Broker, and inaugurate a new path to financial inclusion that advances along the paths of technological innovation and the digitalization of financial services.

What is that?, many are probably wondering.

A bit of context. In July 2024, a resolution was published in the Official Gazette of the Federation to expand access to banking services and products through digital channels, allowing credit institutions to hire brokers to offer them to the general public.

A technology-based broker is a company that, through digital platforms, can offer and perform certain banking services and products to the general public on behalf of credit institutions.

This means that it will now be possible to carry out various transactions, such as opening accounts, transferring money, or paying for services, through websites or mobile applications of companies other than traditional banks.

It is an additional and different figure from that of the physical commission agents' establishments.

With this alliance, Amazon—the world's largest retail platform and provider of cloud computing services at all levels—and Invex Banco and Mastercard will offer customers in Mexico a debit card that will provide the convenience of digital payments.

For now, the product is being tested with a limited number of customers, and in the coming months, Amazon Access will be made available to all applicants.

Amazon Access, a new financial product that will offer customers the flexibility to manage their money freely from their Amazon shopping app, allowing them to pay, transfer, and receive money wherever and whenever they want.

Through the Amazon mobile shopping app, customers can open an Amazon Access account, issued by INVEX Banco, with no minimum balance requirement, annual fees, or transfer fees.

Users will simply need to download the app, fill out a form within the app, and begin managing their account.

Additionally, they will be able to purchase outside of Amazon, either with their digital card or by requesting their physical Invex Mastercard, at no additional cost for purchases anywhere else.

Amazon Access will allow more unbanked customers in Mexico to take advantage of the benefits of the digital economy.

He is part of national financial history as the first Technology-Based Broker.

Mexico is embarking on the path of no return toward digitalization and maximizing financial inclusion. Just in time.

Glimpses

Attention was drawn to statements by Francisco Cervantes, leader of the Business Coordinating Council, stating that he and the government are considering establishing price caps on more products.

In an interview, the president of the CCE admitted that there are branches of activity and companies that have no margin, but it is necessary to maintain inflation stability.

According to press reports, Cervantes said the government and the private sector are analyzing the possibility of agreeing on maximum prices or price caps for new basic consumer products, with the goal of strengthening the domestic market in light of the Mexican economy's slowdown.

So far, the federal government has reached agreements with the private sector to maintain stable prices for basic goods such as LP gas, Magna gasoline, and a basket of 24 basic necessities.

Recently, the federal government agreed with manufacturers and distributors of the corn-flour-dough-tortilla chain to reduce the price of corn tortillas by 5% for the remainder of the year, and also to take steps to reduce the price by 10% by 2030.

The persistence of inflation and inflationary pressures is indeed worrying. What raises questions is whether setting price caps is the right path.

We'll see.