How Ueno, the Paraguayan bank that promised customers 40% cashback, went bust

Ueno, a Paraguayan online bank backed by Grupo Vázquez, grew rapidly by offering generous cashback and expanding its profile through sports sponsorships. The Central Bank took it over last Tuesday and began liquidation proceedings, freezing customer savings and triggering a crisis of confidence in the country’s banking system.

Nearly three million people, about 60% of Paraguay’s adult population, had deposited money with Ueno, which held roughly $2.84 billion in deposits. Paraguay’s deposit guarantee covers up to 75 monthly minimum wages, around $38,000 per depositor, and repayments have begun gradually. The bank’s finances were strained by its 2024 purchase of Visión Banco, while the state had deposited as much as $850 million there; former finance ministers have accused the regulator of negligence and conflicts of interest.