LatAm Investor Interest in US Prompts Region’s Banks to Offer Asset Management

Interest among citizens in Chile, Colombia and Peru to invest in the US to mitigate the impact of inflation and political uncertainty has prompted Latin American banks to open new investment channels and manage portfolios

Interest among citizens in Chile, Colombia and Peru to invest in the US to mitigate the impact of inflation and political uncertainty has prompted Latin American banks to open new investment channels in the country to manage portfolios
September 02, 2022 | 07:00 AM

Bogotá — More and more Latin Americans are seeking to diversify their investments, not only in fixed income and equities, but also in US dollars and local currencies, and as a result more and more financial entities are seeking to offer alternatives to facilitate investments in the United States from the countries of the region.

Recently in Colombia, Grupo Sura and Grupo Bancolombia announced that they had started operations in the United States through subsidiaries to serve the Latin American market from there.

Now Credicorp Capital, which has offices in Chile, Colombia, Peru and Miami, having already been operating for several years in the US, has launched a digital platform, Credicorp Capital Invest, through which clients will be able to access a 100% online investment account in the US and invest in global portfolios managed directly by its asset management unit.

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For the creation of the platform, the financial company, together with BCP Global, a Miami-based fintech not related to the Credicorp Ltd. group, teamed up with Interactive Brokers, one of the largest brokerage firms in the US, and which will be in charge of the management of said investment portfolios.

With this new tool, which can be accessed with a minimum investment of $25,000, clients will be able to access an investment account in the US through Credicorp Capital, and be able to obtain a number of benefits, such as investing from a domicile with lower political risk, accessing their accounts through the web or its mobile application, and diversifying their investments in global portfolios.

Going about investment in this way is the most efficient manner of reducing risk by investing in assets that are not highly correlated to each other.

“This platform will allow our clients to diversify their investments through one of the largest financial markets in the world, the United States,” Rafael Castellanos, managing director of investment products at Credicorp Capital, said regarding the launch of the platform.

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One of the main features of the digital platform is that it allows customers to open an investment account in the US in a simple way, and to which they can transfer funds from their accounts in Peru, Chile or Colombia, facilitating the process for investors and simplifying procedures.

It is not necessary to have a bank account in the US.

“This initiative will allow us to expand the range of products to clients in segments that previously did not have the possibility of accessing investment accounts abroad. Digital innovation allows us to reach more clients, improve their user experience and accompany them through portfolios that match their risk profile,” Castellanos added.

To gain access, customers must register for the profiling and approval process under US rules and laws, and which requires a valid identity document, a utility bill as proof of address, and an e-mail address, and with which a verification and review of the client’s information will be made.

During the digital onboarding, the platform profiles clients using a questionnaire, and as a result one of the six portfolios pre-assembled by a specialized team is recommended. The client may, if desired, invest in a portfolio other than the one recommended.

“With this launch, Credicorp Capital will continue to expand its innovative offerings to improve the client experience through digital innovation. Our goal is to advise them, educate them and reduce their investment risk. We want to be the strategic ally that makes their financial projects a reality,” Castellanos said.

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