A Look at The Countries Suitable for Bfsi: Banking, Financial Services, and Insurance

Introduction

Of the countries under consideration, the five that would be most suitable for immediate establishment of a BFSI subsidiary are Kuwait, South Africa, New Zealand, Peru, and Latvia. These countries present unique opportunities due to their economic stability, growth potential, and strategic geographic locations.

Kuwait: Gateway to the Middle East

Kuwait, located in the northeast corner of the Arabian Peninsula, boasts a high-income society (Kuwait, 2016) and holds approximately 7% of the world’s oil reserves (Kuwait Country Commercial Guide, 2017). This thriving economy is well-suited for additional financial services, such as the insurance and credit services offered by a BFSI subsidiary. Additionally, Kuwait's strategic position could serve as a key entry point into the broader Middle Eastern market, providing the subsidiary with a platform for regional expansion.

South Africa: The African Powerhouse

South Africa is an ideal country for expansion due to its economic and financial stability, which it demonstrated during the 2008 financial crisis. It is the main entry location into the sub-Saharan African market, with corporations generally receptive to partnerships with U.S. companies (South Africa Country Commercial Guide, 2017). Besides the low investment risk, South Africa's use of English as the main language facilitates business operations. With a growing middle class demanding more financial services and its top ranking in "Doing Business in Africa" (South Africa Country Commercial Guide, 2017), South Africa is a promising location. Moreover, as a popular tourist destination, it offers opportunities for globalizing financial services to cater to tourists.

New Zealand: A Stable Democracy

Although New Zealand has a population of only 4.5 million, it boasts a stable democracy with a GDP of $40,695 per capita. It ranks highly in education, particularly in mathematics, and offers a high income level (New Zealand, n.d.). New Zealand is recognized for its integrity in business practices, similar to those in the United States, which will ease the subsidiary's adaptation to the local environment (New Zealand Country Commercial Guide, 2017). The country's small market size and honest proceedings make it an appealing prospect. Furthermore, New Zealand's commitment to sustainability and innovation aligns well with modern business values, enhancing its attractiveness for investment.

Peru: A Growing Economic Leader

Peru is currently a leader in the Latin American economy, with a forecasted annual GDP growth of 3.99% by 2020 (Peru, n.d.). This growth presents a great opportunity for a BFSI subsidiary to promote BMC’s products in Peru's rapidly developing nation. As Peru's economy grows, poverty rates decline, and political tensions ease daily. The country ranks in the top 100 for ease of doing business (Peru Country Commercial Guide, 2017). Peru's current President, Pedro Pablo Kuczynski, a former World Bank official, is promising macroeconomic stability (Peru Country Commercial Guide, 2017), which will be advantageous for the BFSI subsidiary. Additionally, Peru's rich cultural heritage and biodiversity offer unique opportunities for niche financial products tailored to support local initiatives and tourism.

Latvia: The Eastern European Hub

Latvia offers an advantageous geographic location for entering the Eastern European region due to its highly developed transportation systems (Latvia Country Commercial Guide, 2017). This infrastructure can provide an economic and financial gateway for the company, facilitating effective entry into Eastern Europe. Latvia's economic sector, including markets such as crediting and insurance, is ripe for entry by the BFSI subsidiary. With its laws treating domestic and foreign investments equally, Latvia is an essential country to consider for global investment. Furthermore, Latvia's commitment to digital innovation and its status as a leader in fintech advancements make it a forward-thinking choice for BFSI expansion.

References

Kuwait. (2016). Retrieved from https://example.com/kuwait2016

Kuwait Country Commercial Guide. (2017). Retrieved from https://example.com/kuwaitguide2017

South Africa Country Commercial Guide. (2017). Retrieved from https://example.com/southafricaguide2017

New Zealand. (n.d.). Retrieved from https://example.com/newzealand

New Zealand Country Commercial Guide. (2017). Retrieved from https://example.com/newzealandguide2017

Peru. (n.d.). Retrieved from https://example.com/peru

Peru Country Commercial Guide. (2017). Retrieved from https://example.com/peruguide2017

Latvia Country Commercial Guide. (2017). Retrieved from https://example.com/latviaguide2017