Mexico City /
The main challenge that the country has for this 2023 is to control inflation, since at the moment its growth generated that the Bank of Mexico (Banxico) will raise the reference interest rates and with this will eventually impact the demand for mortgage credit, he considers Philip GarciaCEO of Santander Mexico Financial Group.
In interview for MILLENNIUM prior to the 86th edition of the Banking Convention, which will take place in Mérida, Yucatán, on March 16 and 17, the bank manager remarked that at the moment this situation does not occur because the Mexican economy started quite strongly; however, it is something that will eventually present itself.
“We think that it will eventually have an impact on the appetite for mortgages for some products, but so far the truth is that the economy is coming along quite strongly and we have not seen it (…) Our biggest concern is inflation, hopefully it will really subside.” I managed to control inflation first and from there start again a path of growth with very controlled prices”, he added.
He explained that the mortgage credits they are a product in which the banks are absorbing a good part of the interest rate increases that they authorized BanxicoSo they expect it to stay that way for a long time.
“After the abrupt rise in rates last year, both by the United States Federal Reserve and Banxico, there would be less demand for credit and perhaps a more marked deterioration in the cost of credit and delinquency indicators. ”, he counted.
From por nearshoring
Philip Garcia considers that Santander is ready to take advantage of nearshoring, which is why it is considered an agent that will provide a lot of support to Mexico in the face of this economic phenomenon.
“We have seen the governors in the different states, speaking with clients from all over the world, and many foreigners are asking for help to find out how to enter Mexico,” he explained.
For this year, the bank estimated a growth of the Mexican economy of 1 or 2 percent, but Philip Garcia He noted that this estimate remains under review.
“We think that good jobs will continue to arrive, and everyone is looking at how they can collaborate,” concluded the director of Banco Santander.
For this year, Santander estimates a growth of the Mexican economy of 1 or 2 percent, but the director of the institution indicated that this estimate is being reviewed due to the behavior it is having.
“We think that there is still a long way to go in credit cards, in consumption, in SMEs, we think that good jobs will continue to arrive, and everyone is looking at how they can collaborate on this nearshoring issue, so we believe that this will generate wealth to have more jobs, and with it new clients”, he concluded.
auto loans
The bank announced last month a strategic alliance with an electric car company in order to provide the Mexican market with financing for this type of mobility, a segment in which they were not participants until a few years ago.
Philip Garcia He commented that they are currently the third largest player in that segment with a market share of 15 to 16 percent.
“The truth is that we continue to see a lot of demand, there was a relative shortage of cars in the world due to the fact that there were no chips, now to the extent that more cars are arriving, we think that this is a segment that is also going to have a good year and where we think we are going to continue taking market share”, he projected.
