After 10 years of increasing growth Banco Interacciones is still planning for the future
After 10 years of transformation, including a generational and management change, Banco Interacciones (Binter) has turned around its results with a solid financial performance within a framework of healthy and organic growth. Binter is delighted to receive the award as the Best Bank of the Decade, Mexico, which is confirmation of the success of the past decade along with its clients, suppliers, employees, managers, shareholders and authorities, with whom it wants to share and celebrate this prize.
Binter is a leader in the Mexican market in investment banking, government banking and infrastructure project finance; its tailor made solutions and strengths enabling the bank to create long-lasting value for its clients.
Clients turn to the bank for assistance with investment, financing and risk management decisions, and its advantageous offer of flexibility and short time to market solutions.
The bank was founded in September 1993, as part of Grupo Financiero Interacciones. The first few years of operations laid the foundations for the future growth of the bank as a niche player.
The company has always been on the edge regarding financial innovation, taking care of clients and helping them with their financing needs. Binter was the first Mexican bank to provide e-line capabilities for investing in mutual funds.
Seven years ago, the bank changed its strategy, deciding to focus on those segments where the expertise and knowledge of its employees could be used in the best possible way. Thus, the bank started a deep market penetration in government banking, infrastructure projects, factoring to suppliers of government-owned firms, agribusiness, and fiduciary services.
Binter’s target market is the public sector in its three levels: federal, state, and municipal governments; as well as state-owned firms and other government-related companies. These types of markets have payment sources with the lowest credit risk which allows the bank to maintain a healthy balance sheet and a dependable source of payment for its loan portfolio.
These changes in strategy along with a highly innovative insight into the Mexican market allowed the bank to begin a stage of accelerated growth and recognition among its peers.
Looking to strengthen its position in the Mexican market, in July 2006 the bank launched a strategic plan called Everest 3×3, with the main purpose of achieving a sustainable and profitable growth of its productive assets three times in three years. This growth would have its foundations on the leverage (on a regional basis) of the strengths of the bank in the niches where it plays an important role. By July 2008, two years after the beginning of the project, Banco Interacciones reached the goals set for the project’s entirety.
Even with the rapid growth the bank has experienced in recent years, the management has been careful to maintain a healthy portfolio, measured by its low default rates, high capitalisation index and low exposure to credit and market risk.
From 2003 to 2009, Binter grew its total assets by 941 percent, closing 2009 at $5.13m, triggered by a growth in its loan portfolio of 933 percent over the same period.
This growth allowed the bank to reach new records in net income every year, growing from MX$5.2m in 2003 to MX$61m in 2009.
Despite its great results, Banco Interacciones is aware of the constant challenges that a global economy presents and is always on the lookout for new opportunities that emerge in the financial markets. That is why by the end of 2010 the bank started a new strategic plan called “V4: transforming for transcendence and sustainability,” a four-year plan aimed at strengthening the key aspects to build a better bank. Focused on corporate governance, internal control, information technology and processes reengineering, V4 will lay the foundations upon which the bank will operate in the future.
This plan is built around three main pillars: funding, regionalisation and process reengineering. These pillars are divided in 17 strategies which are designed to bring greater stability to processes, services and products.
Banco Interacciones is coming off a decade full of growth and fulfilled challenges, where its performance was indicative of the discipline the bank applies to its strategies and operations. Nevertheless, the bank is undergoing a constant transformation to access more flexibility to invest for future growth.
For more information email: firstname.lastname@example.org; www.interacciones.com