I am very bullish about Mexico, says Michael Roberts, CEO of HSBC North America. “Mexico has become much more important in the US value chain, but also in the business chains of Europe and Asia. The role that Mexico is playing in the plans of many companies is increasingly relevant. In addition, we are seeing how Mexican companies that were already large are growing and are now global players. For us, these are factors that lead us to think about strengthening our commitment to Mexico.”
Mexico will continue to be a beneficiary of the geopolitical tensions between the United States and China, considers this banker who began working in the sector in 1986 and took over the management of HSBC in North America in 2019. “We think that geopolitics and the economy are in favor of Mexico and that in the coming years we will see much higher growth than we have seen. The main factor is nearshoring, but we cannot underestimate other aspects. Mexico is very competitive compared to many countries, including China. Furthermore, it is a friendly nation, with very strong ties to the United States, including cultural proximity and affinity.”
Michael Roberts’ view on nearshoring is optimistic, but cautious, “nearshoring was a bit oversold before, we used the word so many times that we diluted its meaning and importance a bit. That does not mean that it is not a reality that is part of a great transformation. The world has changed a lot in the last five years and continues to change. I do not think that we are going to have less globalization, what is happening is that investment flows are changing direction.”
This change in trend in capital flows has China as a reference, he explains: “Two or three decades ago, China was the big winner because important investments were directed there. That generated enormous growth in its economy in a very short period. Now, capital is moving in another direction. China continues to be very important, but there are other countries that are attracting investments and capital, one of them is Mexico. It has already begun to happen, investment and trade figures show it, but the most important thing is yet to come.”
This great realignment is a great opportunity for HSBC, says Michael Roberts. We are a bank that has a true global presence. I like to think of HSBC as a connector. We offer a connection to the world through a network that has talent and technology. For Mexican companies that export or want to do part of their operations in another country, for individuals who want support in managing their assets. To companies from other countries that are or want to be in Mexico, we offer our services, as well as knowledge of the market and the country in general. There is a logical connection between HSBC’s vision and the moment that Mexico is experiencing: it is one of the most open countries in the world, it has trade agreements with almost 50 countries.”
This executive, born in Texas, is in charge of HSBC’s business in the United States and Mexico. “Being the CEO in the Americas region implies understanding the differences that exist between countries like Mexico and the United States, but also taking advantage of the things they have, that we have in common. The risk management processes are the same, compliance is the same. We offer the same quality of services. Retail banking is much larger here as a proportion of business than in the United States. There, the wholesale business (in which we work with other banks) is much larger than in Mexico, but the trend is that it will grow here and become more or less as important as in the United States. Nearshoring offers us the opportunity to grow on both sides, because companies require our services in both countries and also in other countries where we have a presence.”
The challenge is no longer to be the largest
With almost 40 years of experience in financial services, Michael Roberts has the ability to see how Global Banking has changed, “A few years ago, banks were obsessed with being the largest and the strategies were directed at that. The objective was to be the largest by asset size and to have the largest market share. That is not the case now. The challenge is to be very focused and very disciplined. “Delivering the best products and services in a sustainable and profitable way. To compete, you need scale, and we have it.”
Source: eleconomista
