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 Business News | January 2007 
Mexican Retailer Soriana Eyes Banking Business
 Gabriela Lopez - Reuters
| | Soriana shares closed up 6.81 percent at 90.33 pesos in Mexico City following the announcement. |
Mexican retailer Soriana said on Friday it was evaluating how to enter the banking business, an up-and-coming battleground for store operators fighting for millions of low-income customers.
A growing list of store chains, including industry leader Wal-Mart de Mexico, plan to launch their own banks or credit businesses to lend to their customers.
"We are figuring out what kind of deal we want: whether we pursue a joint venture with a bank, or we apply for a banking license," Soriana Chief Financial Officer Aurelio Adan told Reuters.
Mexico's big financial groups have stepped up lending to clients in recent years, but low-income Mexicans who would not be eligible for most bank loans remain an underserved segment of the market.
"If we look at Brazil and Chile, Mexico is way below them (in consumer lending). There's a huge potential in this sector," Adan said. "Besides, we have competition: Coppel, Famsa, Wal-Mart are doing it."
Soriana shares closed up 6.81 percent at 90.33 pesos in Mexico City following the announcement.
Wal-Mart de Mexico, controlled by Wal-Mart Stores Inc., plans to open its own bank in the second half of this year.
On Friday, Monterrey-based retailer Famsa, which sells everything from shoes to refrigerators, launched its bank operation in northern Mexico.
Soriana said on Thursday it planned to invest $700 million to build 60 new stores over the next 18 months as it extends its reach by focusing on small towns. It currently has some 234 stores in three different formats.
Its shares rose 2.26 percent to 86.48 pesos in Friday afternoon trading. |
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