Over the dollar hunting: More banks are to compensate for foreign currency balances in savings boxes

Waiting for new measures from the Ministry of Economy, Fintechs, Alycs and Banks began to compete for capture balances in dollars, A key segment in the economy standardization process. The recent decision of Banco Supervielle and Banco Galicia to offer yields for the dollars saving box marks a trend change that is already common in other countries, but that until now had not taken place in the Argentine financial system.

In line with the government strategy of foster an “endogenous dollarization”entities are moving their chips to attract currencies to the formal circuit and keep them inside the system, fact that is possible thanks to the exit of the exchange rate. Although in many cases the rates offered are still uncommunched, the turn in the collection strategy does not go unnoticed. At the momentthree Fintechs remunerate balances in dollars, as well as two banks -galicia and supervielle-, While several Alycs with common investment fund managers (FCI) were pioneers in attracting investors during money laundering through the creation of an instrument: the Money Market in dollars, with immediate liquidity and yields of up to 4% in the best case.

A strategy already installed in the world

Platforms such as Wise, N26, Revolution or Payoneer offer For years interest in foreign currency balances in the US and Europe, both in savings accounts and investment products. Argentina, on the other hand, was lagging behind. Exchange restrictions, the volatility of the dollar and the lack of incentives made savers choose to save the savings outside the system: what is colloquially called “in the mattress.”

Now the panorama begins to change. The government seeks to keep those dollars in the formal circuit to channel them in the economy, At the same time that banks continue to increase their contribution to their customers through credit loans.

To have a panorama, the Central Bank in the latest Banks Report, revealed that thanks to the process that is being carried out, credit to the private sector in dollars 4% grew in March -last data available -and 180.2% interanual, with increases in all types of entities, both public and private.

Increasing competition

Remuneing accounts in dollars was not in the original plans of the banks. “In general, there was no consensus on implementing this measure, because it implies an additional cost in a context where entities are required to improve efficiency, adjust spreds and optimize processes,” they said from a frontline entity to Scope. However, the advance of the Fintechs and the dynamism of the market forced a rethink.

“Supervielle and Galicia moved very fast and somehow pushed the rest. Today the banks face a strong competition: not only among them, but also with the Fintechs. And to loyalty customers, you have to offer specific benefits,” they recognize in the sector.

In this context, the Banco Supervielle launched a salary account that pays a 2% TNA in dollars, With immediate accreditation. He does it in alliance with an Alyc, replicating the Fintechs model. For its part, the Banco Galicia It allows the savings box in dollars to generate a 2%TNA, with a cap of US $ 10,000 per person.

For the more sophisticated investors, 2% TNA rates may seem low if compared to the performance of a US Treasury bonus (around 4%) or a corporate negotiable obligation (which yield between 3.5% and 9.5%). However, this comparison It should take into account that these are instruments of different nature, risk and duration.

For the most conservative profiles, these rates are competitive compared to other low -risk alternatives. Today, a fixed dollar period offers between 0.5% and 4% TNA, depending on the bank, and Money Market funds in foreign currency move in similar ranges (between 2% and 4%, in the best case), with immediate liquidity.

Beyond the yieldsthe truth is that you are facing a paradigm shift. The remuneration of balances in dollars could become a key tool for increasing banking, attracting currencies to the financial system and raising competition in an ecosystem that begins to strengthen the idea of ​​”not leaving the dollars still.”