The Financial Revolution is Coming to Mexico

Mexican investment platform GBM launched its new "GBM Advisors" platform, which seeks to provide technology-supported financial advice to reduce the lag in investment participation. During the platform’s launch, GBM also published a study commissioned by EY-Parthenon of the investment landscape in Mexico, which shows a growing preference for hybrid models where both advisors and investors can have "on-demand" finance management services.

"Financial advisory is a profitable career and it is estimated that in the future it will be a more valued profession. On the one hand, investors will always look for a point of contact with a person; on the other hand, trends point to advisors covering more and more areas of investors' financial lives," said Alicia Arias, Director of Advisor Acquisition, GBM. The financial advisory model is evolving from focusing on an investor's portfolio allocation to a service focused on financial well-being. According to the study, the three aspects that investors value most in financial advisors are superior performance or returns (47 percent), advice on tax planning or management (44 percent) and attention, service and convenience (37 percent). Meanwhile, 81 percent of investors in Mexico use digital investment accounts. 

Despite the evolving needs of investors, Mexico has few of them. Only 21 percent of Mexicans have a formal savings account and only 2 percent of these have an investment account. This 2 percent needs education on correctly managing investments, making financial education essential, according to Juan David Taboada, Partner, EY-Parthenon. Not only should investor education be encouraged, but advisors are also looking to educate themselves. This situation affects the development of financial markets and represents an obstacle to the economy's growth, so closing these gaps remains the main priority for GBM.

Financial advisory is evolving towards comprehensive, investor-centric models and technology cannot be left out. Within this environment, GBM Advisors seeks to generate proprietary and third-party investment solutions centered within a technological platform focused on an advisor and hybrid service model. The hybrid model benefits both investors and advisors. It allows investors to be actively involved with decision making, while having the support of an expert to guide or validate their decisions. For the advisor, it facilitates communication with the investor and frees up time to focus on higher-value activities. The study shows that 47 percent of investors prefer the hybrid model, claiming it reduces costs and provides 24/7 access, advisor expertise in complex situations and continuous communication.

"It's Mexico's Time" for a financial market revolution, said Eduardo Glitz, Partner and Board Member, StartSe. Financial advisors are gaining traction but Mexico still needs to rethink the current model and incubate the profession in line with global trends.