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 Business News | July 2005 
Banorte Signs Agreement To Provide Services
 Bloomberg News
| | The accord will allow people living in small towns access to banking facilities. |
Grupo Financiero Banorte SA, the nation's fourth-biggest lender, entered an agreement to offer banking services through 1,554 government telegraph offices and expand into small towns.
Clients will initially be able to withdraw cash, make deposits, check account balances and apply to open an account at the telegraph offices as part of the non-exclusive contract the Monterrey-based bank signed with the government-controlled telegraph company, Banorte Chief Executive Luis Peña Kegel said.
Peña Kegel is seeking to expand into areas that aren't served by any banks as Banorte faces more competition from international lenders such as Citigroup Inc. and Banco Bilbao Vizcaya Argentaria SA in big cities. Half of the government's telegraph offices are located in towns with populations of 10,000 or less.
"The main goal of this partnership is to get closer to the people and give them access to banking services," Peña Kegel said during a press conference in Mexico City. The agreement will triple the number of municipalities where Banorte sells services to 1,114 from 318 currently, Pena Kegel said. Banorte has 960 bank branches.
Later this year, Banorte clients going to telegraph offices will also be able to cash checks, pay utility bills, receive international money transfers and apply for credit lines, Peña Kegel said.
Banorte's stock has outperformed the nation's benchmark stock index this year, with a 10 percent gain. The index rose 8.4 percent in the period. The shares today rose 1.01 peso, or 1.3 percent, to 77.25 pesos at on Wednesday. |
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