Now, Invex’s neobank, has launched a new credit card aimed at providing financial services to individuals who have not previously had access to such products or who seek to improve their credit history. This initiative targets a broad demographic, including those using fintech or Popular Financial Societies (SOFIPOS) who are looking to transition to more comprehensive banking services.

Only 33% of Mexicans aged 18 to 70 currently have access to credit, with 30% being rejected due to lack of information, according to Luis Pineda, Director, Now. Barriers such as insufficient personal data, the necessity of visiting bank branches, and issues with credit bureaus are significant obstacles to financial access.

The new credit card aims to address these barriers, capturing a segment of the 3.5 to 4.5 million people currently holding cards with fintechs or SOFIPOS, but seeking migration to a bank for more extensive services. Additionally, it is designed to cater to the 10 million users looking to move away from traditional banking. Of the 150,000 monthly credit card applications received by Invex, only 50,000 are approved, leaving a substantial number of applicants without options. The new product from Now provides these individuals an alternative, according to Jean Marc-Mercier, General Manager, Invex.

The “Aprobación Total” credit card, in partnership with Mastercard, comes in a conventional card and a secured card. The secured card requires a 30% guarantee for those just starting to build their credit history, with a credit line limit of MX$23,000 (US$1,271). After six months of satisfactory use, users can transition to the conventional card.

This guarantee is intended to manage default rates, leveraging Invex's established credit risk control models, which have maintained a 2% delinquency rate, making Invex the sixth-largest issuer of credit cards in the banking system. The company uses machine learning and artificial intelligence for risk calibration and continuous improvement.

The credit card features a 100% digital and free application process through the app, immediate approval for all clients, no annual fees, and no hidden costs. The physical card can be delivered to customers on the same day.