Nearshoring: 3,000 companies want to invest in Mexico and Scotiabank seeks to take advantage of it

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On Scotiabank’s radar of opportunities there are at least 3,000 companies from around the world that are committed to nearshoring and identify Mexico as an excellent platform to invest in manufacturing capacity; Therefore, the Canadian bank wants to take advantage of this phenomenon to grow rapidly in the country and be the financial provider par excellence of the North American corridor.

In an exclusive interview with Forbes Mexico, the Group Head of International Banking of the financial institution, Francisco Aristeguieta, the relocation is very special, because beyond being a diversification strategy for supply chains, it is an influx of foreign direct investment very important to the Mexican Republic.

According to the manager, they have seen a significant influx of multinational, Mexican and Latin companies investing in Mexico, which became their favorite manufacturing country to import to the United States; To which is added the fact that 14% of its commercial banking clients in Canada operate in the North American corridor.

“We see that at least around 3,000 companies within our opportunity radar in Mexico that are investing in the nearshoring sector are established global companies that come from all over the world to operate in the Mexican market and that identify this country as an excellent platform to invest in manufacturing capacity,” he stated.

Francisco Aristeguieta also highlighted that this phenomenon is attracting new technologies to the country and capital that generates wealth, which positions them to grow rapidly and generate greater returns.

“This is certainly music to our ears, because we bring a specific value proposition to serve those clients who are investing, expanding and, in some way, choosing Mexico as the main market within their supply chain to support opportunities. “What about the United States?”

According to the Group Head of International Banking at Scotiabank, the bank is focused on creating a multinational team, derived from a global initiative where each of the countries, including Canada, select a universe of clients that operate in more of a country with specific needs to serve them in a differentiated way, adding a total of 350 around the world.

In fact, Aristeguieta specified that the firm believes that this platform of differentiated services will attract Canadian clients to Mexico, this is something that is already happening, but will happen more frequently.

“We are going to hold events in Canada to promote investment opportunities in Mexico, as well as in Mexico, where we are going to attract clients from all over the world who see this country as a great opportunity for expansion and entry into the North American corridor. “Our goal is to position Scotiabank as the main reference when it comes to thinking about the North American corridor as a growth opportunity for our clients,” he said.

And the Mexican market has become key for the bank. The manager recalled that in their 5-year plan they seek to generate more than 800 million Canadian dollars in additional profits, where Mexico represents almost half of that growth, making it the the most important country within its international strategy, after Canada.

In this sense, he explained that the commercial banking segment is currently the fundamental focus of growth for the Mexican Republic and the rest of the world, which they believe is currently neglected by international banking.

“Today we have a significant presence in Mexico where we have more than 3.3 million clients, almost 500 branches throughout the country and an extraordinary team, we can make a very particular effort to capture more of the financial services wallet of the commercial client, leveraging that presence and infrastructure that we have in the country.”

However, Francisco Aristeguieta specified that it is not only about serving that commercial client in the country, but also looking for commercial banking clients who also have an international vocation because they are very connected, either through their supply chain or through their operation in several countries. in the world and position itself as the leading bank in its financial services.

“We are looking for growth in the affluent market, emerging affluent market and the upper part of the mass market. In this sector our value proposition is going to become increasingly digitalized. Our digital channels are going to be our main acquisition and customer service channels and we are going to promote the virtual branch much more intensely, a tool that we introduce and complement with human intervention for financial advice.”

In fact, he explained that the role of the physical branch will evolve hand in hand with commercial, multinational banking and the Wealth Management business; as well as in execution with a focus on digitalization, not only in the last mile of contact and engagement with the client, but also integrating it into the back office to maximize operations.

“You will see us investing significantly in our cash management, payments, foreign trade products, and we will create easy-to-use tools for our clients that not only help us capture opportunities in Mexico, but also offshore. when clients make transactions internationally,” he added.

Source: Forbes