Mexico Needs a Country of Investors, Not Savers: GBM

By the end of the third quarter of 2022, GBM had over MX$452 billion (US$25 billion) in assets under custody, said Fernando Ramos, CFO, GBM, at the Financial Transformation Summit.

“Over the last 20 years, we have been one of the companies that has promoted the investment market in Mexico the most,” says Ramos. “We have had the dream of being able to bring the same investment products and services that we have offered to a niche to a broader sector of the population.”

Before 2020, Mexico had almost 100 million checkbooks in banks with a yield between 0% and 1% and only 3 million investment accounts with an 11% return on investment (ROI), including mutual fund accounts and stock market accounts, according to GBM’s CFO.

 “Mexico is a country of savers, not a country of investors, yet. Imagine the impact of taking a greater number of people who today only have checkbooks or maybe not even a bank account and giving them access to compound interest and allowing them to grow their wealth. We are convinced that this will change the country,” said Ramos during the conference. 

Ramos also shared valuable lessons on how companies can achieve steady growth. First, he underscored the importance of digitization to acquire customers, reduce service costs and enhance value propositions. Effective data use is crucial to expand product offerings and improve the customer experience. 

Second, he emphasized the importance of comprehending economic risks and making appropriate capital allocations. "Discipline is essential when facing growth opportunities and making strategic decisions," he says.

Third, he stressed that technology investment should be treated like any other investment project. It is crucial to be involved in project selection, differentiating between expenses that maintain a project and investments that generate new functionalities and revenues.

Finally, Ramos emphasized the importance of accounting and how it can influence investor perception. Proactive communication with stakeholders like rating agencies, investors and financing providers is essential to avoid misunderstandings and to clearly convey financial plans and reality.

The launch of GBM+ in 2020, a digital service enabling people to invest from anywhere, marked a significant milestone in democratizing finances in the investment sector and noted a shift in its business model to align with market evolution. 

“Thanks to this service, our clients can buy and sell shares in Trading, invest without risk and without sacrificing liquidity in Smart Cash, or invest in personalized strategies recommended by an algorithm through Wealth Management,” reads the report.