2021: Interesting Year for FinancesBy Sofía Hanna | Thu, 02/18/2021 - 12:52
Salomón Amkie, Director of Banking, Capital Markets and Advisory at Citi and MBN Expert Contributor, shared this week his view on how 2021 has become a decisive year for the Mexican Energy Sector. Key moments have made this a pivotal year. The first one being the Biden-Harris administration swearing-in and their clear shift toward a cleaner energy policy in the US. “The fact is the US is going through significant challenges itself. Coming off a jarring and divisive election and still working through challenges in healthcare and the economy, the administration’s prospects of being able to focus and prioritize its energy policies in the short term seem unlikely. Monitoring the ability to fend off the pandemic and reinstate stability in the US will be critical for Mexico’s energy sector and a key aspect of how 2021 shakes out,” said Amkie.
The second factor is the increasing focus of global markets on ESG financing, which means for Mexico that capital should be available for well-rounded projects in a variety of manners. Whether it is a company achieving certain energy efficiency objectives or a transition bond in a non-energy-related sector like mining or consumers, there should be opportunities to hop on the clean energy trend. Amkie also mentions the Mexican political landscape in 2021, considering the midterm elections and the role of energy in López Obrador’s policymaking and campaigning, could have a large impact in the future.
Interested in more? Here are the week’s major headlines in Finance!
- Arturo Herrera, Minister of Finance and Public Credit (SCHP), recently announced that Mexican migrants living in the US will be able to open bank accounts remotely with Mexico’s Banco del Bienestar (Well-Being Bank). This initiative is coming at a moment when remittances from the US continue to grow despite lockdowns.
- In a recent MBN interview with Leonardo Estrada, Co-Founder and CEO of “Hola Cash,” the topic of payment collaboration was discussed. Estrada also talks about the future relationship between disruptive and traditional banks. “In Mexico, 75 percent of people with debit cards use them only to withdraw money. This is vital to consider. It is not that people do not believe in banks. There are more than 70 million active debit cards in the country. But people do not, at the moment, have the kind of platform that allows them to easily spend the money they have,” said Estrada. He also gives insights as to how “Hola Cash” provides financial solutions to customers.
- Investment and venture capital are addressed in an MBN article by Hernán Fernandez, Managing Partner at Angel Ventures and one of our expert contributors. He talks about the part people play in this financial activity. “You have to remind your peers and colleagues why you are a good co-investor in their good deals. All of this takes time, discipline and constant love for what you do, as this can potentially happen at weddings, bars, events or parties (at least in a pre-COVID-19 world). It also takes humility to read the signals of stellar founders and many times you should be intrigued about why an amazing team is leaning toward an idea that you do not find that attractive rather than jumping to a great idea that your gut feeling warns you about.”
He also mentions how investors become family to a certain extent and that when hiring someone for this type of job, you should be on the lookout for a human being who understands the complexity of people and is capable of making a self-assessment regarding support capabilities, well beyond the money invested.