JPMorgan expects to continue growing in Latin America, says director

JPMorgan wants to continue growing in Latin America, anticipating a better outlook for the region, said Alfonso Eyzaguirre, the bank’s executive director for Latin America and Canada.

Recent swings to the left in elections in the region and short-term volatility do not affect the longer-term outlook, Eyzaguirre said in an interview with Reuters.

The North American bank executive believes that the region will benefit from geopolitical changes.

“One example is the growth of foreign direct investment due to ‘nearshoring’, the transfer of manufacturing activities from China to address supply chain problems that emerged during the pandemic,” he said. Mexico is one of the countries most benefited by the trend.

Financial flows to the region increased after Russia’s attack on Ukraine and in the face of increased tension between the United States and China.

Eyzaguirre stated that Latin America should also receive a large share of private investment linked to tackling climate change.

JPMorgan has been increasing the number of employees in Latin America, with the expansion of services offered to corporate clients.

The bank is expected to close the year with around 6,200 employees, up from 4,750 in 2020, and has created a technology solutions development center in Argentina that serves the institution globally.

Brazil and the United Kingdom are the only countries other than the United States where JPMorgan operates in retail banking.

In the United Kingdom, it controls the digital bank Chase UK and, in Brazil, it bought a 40% minority stake in C6 Bank, founded by former BTG Pactual partner Marcelo Kalim.

“We chose Brazil for this investment due to its population size, high digitalization and internet usage by customers and Central Bank regulation already adapted to fintech”, said Eyzaguirre.

C6 Bank reached 21.3 million customers last month.