Ever since the advent of the North American Free Trade or NAFTA agreement, banks in Mexico began to make it easier for U.S. companies to operate on both sides of the border. However, there are still complications, such as currency rate fluctuations and a difference in the regulations between U.S. and Mexico banks. With a basic knowledge of banking in Mexico, you can ameliorate or even avoid these potential problems.

Before your company decides to bank in Mexico, you'll need to know the essential process of opening a commercial account, the history of the banking system and what the current exchange rate is, among other items. The basics issues that you take for granted when banking in the U.S. are imperative to banking success in Mexico. Therefore, you can change business banking in Mexico from a challenge to an opportunity, if you consider the following:

1. Examine the essential aspects of commercial banking in Mexico.

2. Understand the regulations and currency rates for the banks of Mexico.

3. Locate any global banks in Mexico to ease the banking transition.

Action Steps
The best contacts and resources to help you get it done

Review the past, present and future of Mexican banks

Without the proper perspective on the Mexican banking industry and the economy as a whole, you won't be able to properly understand the industry. As with any rapidly developing banking system, there'll be differences from an established one like the one in the United States. However, that's not to say it isn't a modernized industry, Mexican banks just represent their own unique challenges and opportunities.

I recommend: Evaluate the Mexican banking and economic reviews from Mexperience and BuyUSA. Examine the instructions on opening a commercial account in Mexico from HSBC.

Be sure to examine the currency rates and regulations of Mexican banks

Banks in Mexico basics include the rules that govern these foreign entities. It would be a mistake to bank in Mexico without knowing the basic regulations and the currency exchange rate for the Peso, which is the national currency of Mexico. Once you learn these basic items, it'll make the banking experience in Mexico much simpler for your business.

I recommend: Visit the Mexico’s Finance Ministry website and contact a representative, if you have any questions about any regulations. Use the currency exchange rates at X-Rates.com to determine how the peso compares to the dollar. Contact the Banco de Mexico (Bank of Mexico) for the latest economic news in the country.

Contact an international bank in Mexico

International banks make the transition of banking in another country much easier, because they most likely have offices in your city or at the very least, your state. That way, you avoid the language barrier and other potential conversion issues and these banks can help you learn the basics of banking in Mexico without ever having to leave the U.S.

I recommend: Speak to a representative at BanaMex or Bank of America Mexico. Banamex, which is subsidiary of international bank Citibank, and Bank of America, has local offices in most states throughout America.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When conducting business with a foreign entity, such as Mexican banks, don't be afraid to ask for clarification if there's something you don't understand. Because of the language barrier, crucial business items can get lost in translation.
• •  During any conversation, always ask a representative of the commercial banks in Mexico for everything, including contractual information, in writing so there's no confusion. Then, read and ask any questions prior to signing any account contracts.

International banking in Mexico is attractive for a wide variety of reasons. Accounts in Mexico banks will be tax-free. This includes taxes on dividend, inheritance, income, interest, profits, and transfer of funds. Also, with the fluctuating value of the dollar, depositing funds in a Mexico banks could be a good investment. Funds in Mexican banks can be deposited in Mexican or American currency.

If you do business with companies in Mexico by importing or exporting products it may be a very good idea to find a Mexican bank. Many private individuals also keep money in foreign banks for investment purposes. When doing either of these practices it is important to keep several things in mind.

1. Familiarize yourself with business banking in Mexico and their practices;

2. Find a bank in Mexico that you can trust that offers the services you want; and

3. Keep track of the currency exchange rate.

Action Steps
The best contacts and resources to help you get it done

Choose an international bank in Mexico

There are many banks in Mexico to choose from when looking for an international bank in Mexico. It is also good idea to familiarize yourself with the customs and cultures of another country when you intend to do business with them and such is the case with Mexican banks.

I recommend: Mexonline.com for information regarding every aspect of Mexico. For more detailed information check their guide to banking in Mexico.

Find a bank in Mexico that fits your needs

When doing business from another country it is a better idea to choose from one of the commercial banks in Mexico.

I recommend: HSBC and the global marketing services that offer investment banking and asset management. Banamex is affiliated with Citibank and offers both corporate and personal banking services. Scotiabank also has a representative office for international banking in Mexico that offers banking, brokerage and online services.

Check the exchange rates regularly

The value of your money in banks of Mexico can change day to day. This change has a direct influence on the value of your money should you choose to withdraw and convert Mexican currency to American.

I recommend: A currency converter can be found at GoCurrency.com. This converter shows the rate of exchange between all world currency types.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When banking in Mexico it is a very good idea to request an interpreter if you aren't fluent in Spanish. Also keep in mind that when using many of the online services, they will be in Spanish as well.

More and more, the financial system of every country in the world, including banks in Mexico, is an inter-connected web of electronic transactions. However, this doesn't mean that the international banking system is the same for every country. The banks in Mexico education and training will differ greatly than that of United States, simply due to different currencies, systems and banking culture. Nevertheless, there are enough similarities that if you familiar with the US banking system, Mexico banks should be a relatively smooth transition.

To obtain this training to work for or collaborate with a bank in Mexico, there are several educational avenues from which to choose. First, there are private training academies and courses that will help you master the system. Second, you or your company can contact the bank of Mexico directly, or there are online tutorials on business banking in Mexico. However, before you begin the educational process there few items to consider, such as:

1. Enroll in Mexican banking courses through universities or online academies.

2. Contact global banks in Mexico or ones within the system for training opportunities.

3. Review online tutorials to gain an education of the commercial banks in Mexico.

Action Steps
The best contacts and resources to help you get it done

Register for university training programs for local or international banking in Mexico

Universities both online and in the US offer programs that can help you or employees obtain the proper banking education. Some of these programs are partnerships, in which you need to enroll in the local university to be eligible for training. Online academies on the other hand, allow you to take core courses related only to banks in Mexico.

I recommend: Speak to representatives at Arizona State University about their Mexican banking exchange program. Examine the online educational courses that the Bankers Academy offers.

Speak to international and Mexican banks directly about training classes

Whether the bank has headquarters in Mexico, or an international bank in Mexico, both of these types of institutions can be excellent educational resources. International bank programs offer a more global perspective on the Mexican banking system, while local banks provide more specific Mexican banking training. Either option is valid. It'll depend on you or your company's training needs.

I recommend: Evaluate the banking analyst-training program at Deutsche Bank for international perspective. Review the publications and training opportunities at the Banco De Mexico for a localized banking education.

Study the online tutorials of the banks of Mexico to understand the basics of the system

Online tutorials offer Mexican banking history and evaluation without having to enroll in courses or take an entire curriculum. They give you the opportunity to know if you or your company want to invest in this type of education.

I recommend: Examine the online banking tutorial at Mexperience. If you’re in need of a more detailed report, you can purchase the banking system outlook from Moody's Global Credit Research.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Be sure to ask for the credentials and certifications for any training program for Mexico banks prior to enrollment. While most are legitimate, some fraudulent programs will be a waste of time and money.