Passport to Possibilities: ViewTrade in Peru

As the global force that powers fintech, ViewTrade serves clients in every corner of the world. Our team is comprised of globetrotting fintech experts who make it a point to visit clients familiarizing themselves with the nuances of the local markets in their region and helping these firms achieve continued innovation. In this series, ViewTrade team members report from the field on their latest travels and key takeaways.

Describe the purpose of your recent trip.

I have been working with Peruvian foreign financial institutions (FFIs) since 2000. Visiting clients and prospects in person allows me to build and maintain long-lasting connections and deepen their relationship with ViewTrade. It provides an opportunity to establish trust, demonstrate commitment and better understand a client or prospect’s needs and expectations.

The concept of “know your customer” is important in our industry. When meeting in person, I often spend time learning about clients’ technology and brokerage offerings and discussing how ViewTrade can tailor its solutions to meet their corporate goals, investment preferences and specific needs in the local market. I ask about their corporate strategies and offer guidance based on their unique circumstances.

During these visits, I am also able to offer in-person training sessions and educational workshops to clients, particularly regarding new technology products, trading platforms, regulatory updates and other complex concepts. This helps clients understand our offerings and promotes informed decision-making. I can also offer personalized service and address any concerns or questions directly.

Finally, meeting in person is an opportunity to assess client satisfaction with ViewTrade’s services and learn how to maximize it.

What is ViewTrade’s relationship with this region? (current clients, partners, etc)

We work with a number of firms in Peru and are always looking to extend our market share. On this most recent visit, we met with one of the largest financial planning firms in the LatAm market and have now moved into final approval by their risk department, which would add a significant name to our client list and continue to grow our presence in Peru.

What opportunities does this market present?

Peru has experienced consistent economic growth in recent years. The Peruvian financial sector has been growing steadily, with increasing demand for banking services, insurance, asset management and fintech solutions. This demand has been fed by an emerging middle class, leading to increased consumer spending and demand for a wide range of products and services specifically in the financial arena.

Any differences of note from other regions where ViewTrade operates?

The Peruvian equity market is relatively small compared to other regions ViewTrade operates in. The market infrastructure supporting equity trading in Peru includes the Lima Stock Exchange and the Central Securities Depository (Depósito Central de Valores, or DCV). While technology adoption and trading systems have evolved, the level of technological sophistication still lags behind other regions. The Peruvian equity market has been working to enhance international integration and attract foreign investment, including via initiatives like the Integrated Latin American Market (MILA), which aims to integrate the equity markets of Peru, Chile, Colombia and Mexico.

The investor base in the Peruvian equity market includes both institutional and retail investors. Due to the rising middle class, retail investor participation has grown significantly in recent years, influenced by initiatives to increase financial inclusion. However, the market still has a relatively high proportion of institutional investors compared to retail investors.

How are ViewTrade’s services and products beneficial/applicable to this market? What pain points are they solving?

One of the challenges for broker-dealers and fintechs in Peru is the slow adoption of technology by retail customers, which lags behind other markets around the world. With ViewTrade, financial entities in Peru can leverage our technology and brokerage expertise to enhance their current cross-border offering to customers at a lower cost and with increased efficiency. With ViewTrade, these firms can also access services otherwise unattainable to them due to their size in comparison with institutions in other regions. 

Any other interesting anecdotes or takeaways from your trip?

Due to the lag in technology offerings in the country, one of the themes brought up in every meeting was the transition of the markets to a T+1 settlement cycle, effective May 28, 2024. Many of these firms have invested a lot of time and money in consulting on how this transition will affect their business. ADR arbitrage is a big part of the business conducted by many of these firms, and the change to a T+1 model puts a big burden on their operations teams to have trades settled and delivered on time to avoid local settlement issues, suspensions and fines. Based on these discussions, I was able to have ViewTrade change our policy on instruction delivery cut-off times for all LatAm clients to alleviate the pressure placed on their operations teams and allow them more time to have instructions sent to ViewTrade.