HSBC Mexico prepares interest rate reduction on its products

In front of a scenario increase of the reference rate on behalf of Banco de México, the banks which operate in the intensify the competition with new consumer credit products and cost reduction.

In this regard, HSBC Mexico City reported that around the second week of July will announce a reduction in the interest rate on its payroll products and personal loans, segment that experienced a slowdown faced with the greatest caution of customers by the scenario renegotiation of NAFTA and the election results on Sunday, July 1.

Currently, the reference rate Banco de México is 7.75% and several analysts expect that around the month In August another increase was announced by

"Rates have risen but we are proposing and we will announce next week for personal and payroll loans, a rate cut.It will be small, but in this Context I am expecting an adjusted move to give a message of little certainty to our customers, "said Juan Parma, deputy general manager of consumer and equity banking at HSBC México.

Banks, a necessary evil

The director said that in front of customers, banks were more a necessary evil than a solution, which is reflected in a study prepared by the bank where 89% of respondents indicated that the problem with financial institutions is that they do not listen and do not meet their needs.

Thus, faced with an environment of greater competition, the bank of British origin seeks to attract more customers in the millennial segment of young independents who start their financial life. families looking for better care and savings plans.

Under the name "Stilo", HSBC wants to attract 20,000 new customers on a monthly basis, offering insurance against and theft of mobile devices, debit cards with loyalty plans and the opening of up to three additional accounts that a parent wants to start with their children.

Currently, HSBC has 10% of the consumer banking market in Mexico with five million and is aiming to reach 6 million in 2021.

The executive said the new HSBC offer will be available from 2 July and that, despite the result, regardless of elections, the bank maintains its business strategy in the country.

"We are betting on Mexico, it is a top priority country for HSBC," he said.

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