Una nueva métrica_SEARCH that'll help consumers compare remunerated accounts

From November 1, banks and digital wallets offering remunerated accounts backed by common investment funds will have to disclose a single performance measure: the change in the value of the fund unit over the last seven calendar days, expressed as a nominal annual rate and after subtracting administration and custody fees. Until now, each entity selected the indicator it considered most convenient, which made it difficult for customers to compare different alternatives on equal terms.

The measure will apply to accounts whose return depends on the performance of the underlying investment fund, also known as a money market fund. These products provide immediate liquidity, because the money is invested when it is deposited and can generally be withdrawn without delays. They accrue interest daily and tend to invest in fixed-term deposits, repo transactions and remunerated bank accounts. Unlike accounts with a predetermined fixed rate, their return changes daily according to the performance of the fund.

What changes in November

Entities will have to present the information in an easily accessible location on all digital platforms where the service is offered. This includes online banking, bank applications and digital wallet applications, and the figure must appear next to the investment option instead of being placed in a separate or difficult-to-find section. The objective is to reduce the information asymmetry between providers and make the comparison more direct for depositors.

The regulation covers, among others, the remunerated accounts offered by Personal Pay, Mercado Pago, Lemon, Cocos, YPF App, Santander, Macro and Galicia. It does not include accounts with a fixed rate, such as those of Banco Nación, Supervielle, Ualá, Carrefour Banco and Naranja X. In those cases, the return is already predetermined and therefore does not require the same performance calculation as a variable investment fund.

• Banks and digital wallets must show the seven-day variation of the fund unit, expressed as a nominal annual rate.
• The reported return must already include administration and custody fees.
• The information must be visible and easy to access on the platforms where the account is offered.
• The rule applies to accounts backed by common investment funds and does not cover fixed-rate accounts.

The standard also matters when assessing the conditions attached to each product. Some banks and digital wallets pay interest only on the first two million pesos deposited, meaning that money above that amount does not generate a return. Other providers make the benefit conditional on holding a salary account or subscribing to a package of services. Therefore, even with a standardized indicator, customers will still need to review the limits, requirements and costs associated with each account before deciding where to keep their funds.

Let's go to the numbers: the central comparison will no longer be between a nominal annual rate and an effective annual rate, or between a best period and a future projection. All variable-return accounts will be evaluated through the same recent seven-day variation, expressed annually and net of the relevant administration and custody fees. This will not make every product equivalent, but it will provide a more uniform basis for comparing their recorded returns. The next indicator to watch is how each entity incorporates the new standard into its applications and whether customers can clearly identify the applicable conditions and limits.