Digital Companies Take the SpotlightBy Sofía Hanna | Thu, 08/05/2021 - 12:34
This week, Spanish fintech Ritmo arrived in Mexico to help entrepreneurs boost their businesses. The Pacific Alliance finished negotiating with Singapore to create the PASFTA, which will help those involved expand operations in the region. Juan Luis Bordes, General Manager of Paypal Mexico, shared the company’s achievements and its next steps moving forward. Finally, Airbus released its 1H2021 report, which shows positive results and a new forecast for the rest of the year.
Interested in more? Here are the week’s major headlines in Finance!
- Ritmo, a Spanish fintech, just arrived in Mexico. This is its entry point to Latin America and the company aims to finance over US$100 million in the region. Ritmo wants to empower thousands of entrepreneurs by giving them access to a suite of capital and insights to boost their businesses. Its objective in Mexico is to finance more than US$20 million for Mexican e-commerce and sellers during its first year of operation. Achieving this requires a quick understanding of the local market to guarantee solid deployment.
- Singapore and the Pacific Alliance finished their negotiations to create the Pacific Alliance-Singapore Free Trade Agreement (PASFTA), which will allow all participants to enhance business relationships, attract investments, expand market access for goods and boost access for service providers in a wide range of sectors. The negotiation was attended by the Ministers of Trade of Colombia, Maria Ximena Lombana; Peru, Claudia Cornejo; and Mexico, Tatiana Clouthier. Representing Chile was Minister of Foreign Relations, Andres Allamand, and representing Singapore was Minister for Trade and Industry, Gan Kim Yong. The treaty’s benefits to all countries involved include a platform for collaboration in various areas such as energy, food trade, digital economy, infrastructure and urban solutions, port management and logistics, and the linkage of National Single Windows.
- Juan Luis Bordes, General Manager of PayPal Mexico, shared with MBN how digital inclusion could help financial empowerment. He mentioned that the next feature that will allow PayPal to stand out from its competitors will be risk reduction for users. The company is also planning to attract new customers by improving the online shopping experience. Bordes also mentioned that financial inclusion has been an important challenge for PayPal, as the company aims to help people who already have a bank account go digital. But clients who do not have a bank account, there is much to be done by financial institutions, governments, the private sector and other players.
- Airbus published its 1H2021 performance report, which shows strong results reflected in its deliveries and upcoming plans. The company even mentions that given its performance, there has been a change in its 2021 guidance, which now includes the delivery of 600 commercial aircraft, an EBIT Adjusted of €4 billion (US$4.7 billion) and a Free Cash Flow before M&A and Customer Financing of €2 billion (US$2.3 billion) in 2021. “Although the COVID-19 pandemic continues, the numerous actions taken by the teams have delivered a strong H1 performance. This enables us to raise our 2021 guidance, although we continue to face an unpredictable environment. We are now working to secure the A320 Family ramp up while transforming the industrial setup. Furthermore and following Board approval, we are enhancing our product line with an A350 freighter derivative, responding to customer feedback for increased competition and efficiency in this market segment,” said Guillaume Faury, CEO of Airbus.
- Changing financial education by adding knowledge on the waste of money could contribute to lowering Mexico’s pollution altogether. BBVA Research argues that homes contribute to climate change in numerous ways and a change in financial behavior that leads to savings and reducing expenses, would lead to efficient use of money and help to fight climate change. Some examples of areas households could save money on and contribute are the use of natural gas, electricity and water.