January 19, 2011
SWIFT Is Coming to LatAm in a Real Way
Where SWIFT ends and bank services begin?
When members of The NeuGroup’s LatAm Treasury Managers’ Peer Group met in June 2010, Venezuela—as usual—was much on everyone’s mind. Still the underlying theme was the ongoing desire and efforts to implement standardized connectivity and messaging via SWIFT-based solutions. Other topics discussed included:
1) SWIFTNet in Latin America. Members got clarification on how SWIFT fits into the HSBC’s connectivity picture.
Key Takeaway: Banks should complement SWIFT and not compete with it.
2) Drilling into Brazil Treasury Ops. Due to its size and growth rate, this country is the most important to the member firms.
Key Takeaway: Brazil is growing out of its emerging-market status and gaining the full attention of management.
3) Venezuela Update. Members discussed the recently halted parallel (permuta) market and the strangled access for dollars.
Key Takeaway: The shutdown of the parallel market and the establishment of the new SITME market have all but closed the door on accessing dollars for anything other than the trade of necessary items (which already go through CADIVI).
4) Overview and Regional Outlook. Sponsor HSBC walked members through its strategy and capabilities in the region.
Key Takeaway: HSBC’s goal is to be the top-three in each of its target markets in LatAm. Thus it is looking to grow by acquisition and develop service delivery via standardized connectivity.
Sponsored by: