JPMorgan Chase & Co (NYSE:JPM) has pronounced a sudden closure of its private banking services in Mexico. The company’s move has compelled most of the wealthy clients to consider places to transfer their money. Reports show most of them moving their money to international financial capitals.
Plans to serve clients from the outside
The bank’s move to sign a deal to refer the local businesses to BBVA Mexico served as a relief for most local businesses. According to sources, the New York-based firm might continue serving clients from a distance. In other words, it will rely on a platform it has outside the country to continue its service delivery.
It was last summer that JPMorgan announced the discontinuation of its local wealth management services in Brazil. People are getting to read a trend in these changes, but the good thing is that the business has been giving the clients referrals. Upon making the Brazilian move, the bank referred the clients to Banco Bradesco SA.
Latin American families unhappy about new policies
There has been a noticeable ongoing trend among wealthy Latin American families to find money managers. These families have been eyeing money managers in the world capitals, with claims showing their discomfort with the populist policies.
President Andres Manuel Lopez Obrador is the man behind the policies which wealthy families find rather oppressive. The leader has been pushing for tax crackdowns, something the wealthy families are unhappy about every day.
As mentioned earlier, most of these families have been considering the serious move to move a great deal of their wealth abroad.
In most years of its operations, JPMorgan has been focusing on offshore accounts for its private-banking business.
A lot of changes have been sweeping across over the years. For example, in the previous year, reports showed Mexicans having moved about $18.8 billion to foreign accounts. The figure, according to analysts, was the largest since 2016.
The bank has told investors that it will maintain part of its businesses in Mexico. It mentioned investment banking, treasury services, and trading.
Challenges happen to be part and parcel of business, according to analysts. They reveal that some of the bank’s segments have been showcasing outstanding performance.