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Financial Services

Director of Financial Services Practice
2655 Le Jeune Road, suite 1105
Coral Gables FL  33134  USA
Phone: (305) 569-9133

FINANCIAL SERVICES SUB-SECTORS:
| BANKING & BANK SERVICES | CREDIT CARDS |
| INSURANCE | INVESTMENT BANKING |
| REMITTANCES | WEALTH MANAGEMENT | OTHER |

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From the mid-90s onwards, Spanish and American banks led a foreign takeover of the region’s sector, most notably in Argentina and Mexico where local investors today retain less than 20% of banking assets. Though retail in name, most Latin Banks, foreign or otherwise, has traditionally focused on corporate clients and the moneyed elite, providing boutique services at high margins. Future growth will have to come from a wider client base of mid-size companies and working class consumers by offering higher-risk credit tools and introducing new products like Insurance. .

Since 1995, InfoAmericas has helped global financial services firms to read the competitive landscape and pinpoint opportunities across a diverse range of markets in Latin America. Our consultants have analyzed many of the segments in both consumer and corporate finance including: Wealth management, Consumer credit, Trade finance, Insurance, Corporate lending and Investment banking services.

Challenges

  • Country risk remains high in many markets, often below investment grade. This helps to keep interest rates high and with them the cost of lending remains out of reach to the middle market.
  • Latin American finance laws are often so protective of consumers’ assets that banks refuse to offer credit because in case of default they cannot seize said assets.
  • Though aggressively liberated over the last decade, certain segments of financial services remain over-regulated and out of reach to foreign investors.
  • The upper-class of Latin America keep their savings off-shore (approx. $1 trillion) thereby starving the banking sector of inexpensive capital and contributing to currency instability.

Opportunities

  • Open markets lead to greater specialization and trade growth that continues to outpace GDP growth. Latin America is one the most profitable trade finance markets in the world and will continue to grow.
  • The still impressive levels of FDI bring new multinationals to the region, all of which demand a wide variety of corporate financial services.
  • The notion of offshore accounts is no longer the exclusive idea of the elite. The upper-middle classes, a much larger segment, now demand that their savings be moved offshore. Lacking the money to travel abroad regularly in order to manage their dollarized savings, this “new” money wants to be serviced in their home country.
  • The proliferation of debit cards exposes a large consumer base helped create the next generation of e-banking services that are a more cost-effective means of banking the working class than traditional branches.

 

   

InfoAmericas is the leading business intelligence and consulting firm in Latin America
with offices in  Miami - Mexico  - Brazil . . .  and affiliates in
Argentina - Chile - Colombia - Dominican Republic - El Salvador - Guatemala -
Honduras - Nicaragua - Panama - Peru - Puerto Rico - Uruguay - Venezuela

 

 

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