Banorte Banks on SME, Mortgage Growth

Borrowers in Mexico’s small business sector and the lower portions of the housing markets will offer the greatest lending growth opportunity in the country’s competitive financial services sector, Alejandro Valenzuela, CEO of Banorte tells LatinFinance. The only remaining large Mexican-owned bank is increasing its SME portfolio through new bank account and payroll products. Valenzuela believes there is plenty of space in the market for banks willing to write mortgages for the lower end of the housing scale. “The premium segments tend to be more crowded because that’s where all the banks find good returns with lower risk,” Valenzuela says. “The C and D markets will be the next stage of development and that’s totally under-banked. Managing the risks correctly, the potential there is tremendous.” Lacking ties to one of the troubled global powerhouses, his bank is able to concentrate on careful expansion, he explains. For the full interview with Valenzuela, go to LatinFinance.com.