Are you a Scotiabank, HSBC or Inbursa customer? Then you will be interested in knowing why these financial entities that have operations in the Mexican national territory will close branches.
Despite the fact that a few years ago Mexico was not distinguished precisely by the use of banking systems, the truth is that in recent times the number of users and financial transactions has increased.
It is in this way that one of the Mexican organizations that has the most work in Mexico is the National Commission for the Protection and Defense of Users of Financial Services (Condusef).
The National Commission for the Protection and Defense of Users of Financial Services, it should be emphasized, is a decentralized body of the Mexican government in charge of monitoring financial services in the national territory.
It is in this way that, to date, less than 10 financial entities are the ones that concentrate banking operations in Mexico, among which are Scotiabank, Inbursa and HSBC.
Thus, according to what was reported by these financial entities, both Scotiabank, Inbursa and HSBC have been closing some of their branches throughout the Mexican Republic.
The foregoing, as detailed by the banks, because the new technologies that have been integrated into banking services have changed the way of withdrawing cash and carrying out various financial activities.
In this way, by adding new technology, customers of banks such as Scotiabank, Inbursa and HSBC now have bank cards without numbers and devices that allow operations to be carried out without having to go to the branches of financial institutions.
In this context, some Mexican bank branches have been closing, while being replaced by digital services through mobile devices and smart ATMs.
It is worth mentioning, in this regard, that while Banco del Bienestar, a financial entity of the Mexican State, is opening more and more branches in Mexico, private commercial banks have abandoned the construction of physical spaces, while extending their digital services.
And it is that, according to information from the National Banking and Securities Commission (CNBV), they record that, at the end of the first semester of this 2023, 79 million 706 thousand 440 contracts were registered to carry out banking operations from mobile devices, which represented 10 million 76 thousand users more than the same period of 2022.
Under this understanding, during the first 6 months of the current year, Scotiabank registered 19 fewer branches, compared to the same period in 2022. Meanwhile, the HSBC bank reported the closure of 16 branches: while Inbursa closed 9 facilities.
On the other hand, Banco Azteca, BBVA and Citibanamex are the financial entities with the most branches in Mexico, with 2,021, 1,736 and 1,280, respectively.
Financial Intermediation: One of the most essential functions of banks is the intermediation between those who have surplus money (savers) and those who need financing (borrowers). Banks capture customer deposits and use those funds to make loans to individuals and businesses, which stimulates investment and economic growth.
Deposits and Accounts: Banks offer deposit account services, such as checking and savings accounts, where individuals and businesses can keep their funds securely and access them as needed. Bank deposits are generally backed by government deposit insurance guarantees, providing peace of mind for customers.
Credit and Loans: Banks facilitate access to credit by providing personal loans, mortgages, business credits, and other types of financing. These loans can be used to buy homes, vehicles, finance business projects and more.
Payment and Transaction Facilitation: Banks offer services that allow individuals and businesses to conduct financial transactions, such as wire transfers, bill payments, international transfers, and checks. These services help facilitate trade and economic interactions.
Investment Services: Many banks offer investment services including investment accounts, mutual funds, financial advice, and asset management. These services allow clients to invest their funds with the goal of generating returns and achieving long-term financial goals.
Custody and Security: Banks provide safe custody services for valuables, important documents, and other valuable assets. They also offer safe deposit boxes where customers can store important items.
Currency Exchange: Banks also offer currency exchange services, which facilitate international transactions and allow travelers to obtain foreign currency.
Risk Management: Banks offer insurance services, both for individuals and businesses, helping to manage financial risks and protect against unforeseen losses.
Central Bank Functions: In many countries, the central bank performs essential functions, such as issuing currency, regulating monetary policy, and supervising the financial system to ensure its stability.