Macroeconomic stability, the autonomy of the Bank of Mexicocoupled with the changes that occurred worldwide due to the pandemic, were positive factors that influenced the international companies direct their investments towards the country.
For Julio Escandón, general director of Base Bankin these years Mexico benefited from the economic stability and that has contributed to the bank’s growth in its different portfolios.
“The balance for the financial sector and in macroeconomic terms is relatively positive in the sense that the renewal of the T-MEC at the most appropriate moment. (President) Donald Trump was just coming in and the trade war with China was beginning and that greatly promoted what we now call nearshoring. The autonomy of the central bank also gives peace of mind to the markets.”
Although economic growth is lower, on average, when compared to other six-year periods, he considered that it must also be recognized that there was the effect of the pandemic and a significant drop in economic activity around the world.
“Beyond that, and not politicizing the matter, I think the important thing, regardless of the government, has been the geographical situation of Mexico, the opportunity that we have taken the private initiative to take advantage of nearshoring and capitalize on the opportunities that we are seeing in the markets,” highlighted the banker.
The arrival of new companies in the country, attracted by the nearshoring trend, is visible in various sectors, including the financial sector. So, for this year, Banco Base sees that the main opportunity is in relocationan area in which they want to go further than their competition.
In an interview, within the framework of the 87 Banking ConventionEscandón, highlighted that his offer is not only about capitalize on nearshoringbut to offer international payments and transfers, operational agility and transparency.
“There are opportunities in credit growth for the companies that come, but from the moment they arrive we offer them the financial service, a bank account or a transfer. We identify them since they show interest in arriving in Mexico,” said the banker.
Its location in the north of the country has allowed Banco Base to see nearshoring first-hand. In fact, Julio Escandón reported that they receive Asian businessmen with great interest in opening a plant or office in the country, and on the institution’s side they are in the process of opening a representative office in China.
In order to corner this market, he urged working on limitations. Among the challenges to relocation that they have detected are insecurity, the availability of labor, as well as infrastructure that guarantees the supply of water and energy. Otherwise, he asserted, companies do not have the incentives to establish themselves, so they opt for other markets.
This situation has led potential new companies to postpone their decision to arrive in the country. “They usually send an exploration group. Rather than canceling and deciding on the other hand, what I have noticed is that they have postponed decisions,” he noted.
They explore new markets
The appearance in the Mexican market of banks with a fully digital operation did not change the position of Base Bank on how to use technology to advance the banking business. This, coupled with the regulatory costs and the implications of being supervised, make them rule out a new license.
Instead, its strategy is based on taking advantage of Fintech companies under the spin-off model to explore whether there is a potential market to implement a digital strategy without the need for advice or the intervention of a person.
“We have invested significant amounts in these types of spin offs. What we have seen so far is that even high-level, high-volume corporate companies continue to appreciate service and human communication,” he noted.
They also review the coverage advice regarding amounts to be covered and when to do it. Likewise, they carry out research on exchange rate movements with the support of artificial intelligence.
In short, Escandón visualized that the future is not 100 percent digital even with the banks that is what they call themselves, nor totally with human contact. “I see a hybrid where certain interactions become human, digital and blended.”
