Summary Report

Mexican roots, American written: thoughts on fintech, banking, and markets

14/11/2021
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Banks Fintech Mexico USA

We typically write about the largest US banks on this platform. This note is different. We recently spent time in Mexico speaking with entrepreneurs, business executives, current and past financial market participants, and friends. These conversations triggered thoughts about a range of topics. In this note, we provide high level thoughts on:

– What moribund public and increasingly dynamic private markets in Mexico tell us about global investing today;

– Extreme valuation discrepancies between disruptive and old line companies (OHM contributor Carlos Macedo recent report on Nubank’s pending IPO addresses this topic in more detail);

– The challenges of valuing young companies that can address specific problems but whose ability to develop sustainable businesses is is unclear; and

– The possible benefits of tying traditional banking capabilities (including a bank license) with solutions offered by fintechs

Our thoughts aren’t exclusive to Mexico. In fact, we think the threads of the conversations in Mexico are applicable to business and market conditions in the US and globally.

Please reach out at 917 757 0124 if you would like to discuss.

Saul

Saul Martinez

Saul Martinez
Analyst - Equities Strategist
Glen Ridge, NJ, USA

Disclaimer

DISCLAIMER: The author holds position in two private companies providing financial services within the digital assets ecosystem.
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