Investing in Panama will be a top priority for Colombian bank Banistmo, who is expanding their presence in the country significantly. The bank, which made a name for itself in Panama after buying HSBC’s Latin American branch a few years ago, has been planning such an investment for quite some time now. In a recent press announcement, they made this clear, by stating that Banistmo will invest around $100 million into Panama, via properties, technology, and a new regional headquarters. Banistmo, which is part of the Bancolombia group, wants to modernize how people bank in Panama by overhauling their online banking system, adding more branches, ATMs, and investing in new mobile pay technologies.
What benefit does this investment provide for Panamanians?
On the surface, when a bank invests $100 million into country, it’s mostly for the benefit of the bank. New tech, better service, and a bigger presence certainly help to bolster Banistmo’s business. However, investing in local businesses to accomplish this also has a huge trickle-down effect on the local economy. International investment is a major source of income for everyone involved in the Panamanian economy, as long as Panamanian companies and the local workforce support the infrastructure and execution of such investments.
Attracting more investment through modern upgrades
With Banistmo’s lofty plans for modernizing their banking technology and systems in Panama, they are not only attracting Panamanians, but also incentivizing large companies to do business with them here. Lowering the risk of investing, and making their systems more secure, and easier to manage, Banistmo is trying to promote Panama as an ideal, and more importantly, safe place to bank. If their investment into their own infrastructure upgrades is successful, more companies will feel secure about investing in Panama, especially in regards to future and stable growth.
Banistmo’s goal is to be THE Panamanian bank, and in order to do that; they need to generate more local jobs and business. One big step, and a big chunk of the bank’s $100 million investment, is to create a massive regional headquarters in Panama City.
Going big at Panama’s new Soho Mall
Panama’s latest and greatest luxury commercial mall is not just a draw for high-end shopping and tourists; it will also be the site for the new regional headquarters of Banistmo. Soho Mall is a great example of investing in the future of Panama, and its economy, with the most global luxury brands calling it home. It’s a symbol that Panama’s economy is doing well, and even more so, will do even better in the near future. With brands such as Fendi, Louis Vuitton, Prada, and Salvatore Ferragamo setting up flagship stores there, it’s no surprise that this would be the perfect location to make a name for yourself if you’re Banistmo. The hopes are that the new headquarters will help draw bigger investors, and bigger accounts within Panama, as well as showcasing the bank’s current technology and infrastructure investments to the public.
Banistmo is in the black
Since its takeover of HSBC, Banistmo has done great work at making money off of their investments in Panama in just a few short years. According to the bank’s president, early predictions were actually exceeded in 2013 and 2014, giving them a good sign that now is as good a time as any to make a significant financial commitment to the country. Panama’s economy, in fact, has actually slowed down a bit since 2012. But that’s not stopping future investments one bit. Rather than rely on a good investment climate in Panama, Banistmo is setting out to create a great investment climate in Panama; and that takes money. And if this $100 million announcement is any indicator, they are prepared to be aggressive about doing it.
