Mexico City. In Mexico, nine out of 10 transactions are made with cash, half of adults lack a formal savings account and only 11 percent of people have a credit card, shows a new study by Nu , the SXXII Law and Technology Civil Association and the Brazilian Embassy.
These barriers, the document details, particularly affect women and rural communities, which highlights “the urgent need for a regulatory environment that encourages innovation and competition, while guaranteeing the protection of users and stability.” of the financial system.”
According to the study, it is required that with the participation of all relevant agents of the financial system, such as regulators, investment promoters, the Secretariats of Economy, Finance and Welfare, traditional banks and new institutions of the system, academia, civil society and international institutions, a high-impact public policy is generated that promotes increasing the inclusion of more people in the financial system.
“We know that this exercise has already been done but it is about putting it as a priority for two main reasons: First, because the technological innovations and the agents capable of translating them into new robust financial products and services already exist and are beginning to operate in the Mexican market.
“Second, because the arrival of a new government that seeks to generate shared prosperity allows for the generation of concerted actions and a combination of tools that can achieve levels of financial inclusion greater than 85 percent of the population in the short term, especially those who have been traditionally excluded,” he emphasized.
The study considers that it is possible that through a systematic interpretation of the existing regulation, and without incurring inappropriate risks, the entry of new actors can be facilitated that, based on the intensive use of technology, facilitate the access of millions of Mexicans to low cost to financial services and products, and thereby modify the trend of very slow growth of inclusion that has been observed for several years.
He points out that to make Mexican regulation work as a catalyst for innovation and inclusion, it is necessary to allow a regime in which regulated entities can expand their services, and this could include the creation of new categories within the Fintech Law, which allow digital financial entities scale their operations without having to resort to more traditional regulatory structures.
“The new government has a huge opportunity to generate a digital inclusion policy that also includes financial inclusion. Thus, digital identity can serve as a basis to facilitate the use of digital means of payment and even the possession of savings accounts, which would allow, as in the case of Brazil, an exponential growth of financial inclusion in the country,” he stated.
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#Change #financial #regulation #include #people #system
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**How can policymakers ensure that the rapid expansion of Fintech solutions in Mexico does not inadvertently exacerbate existing inequalities, particularly for marginalized communities with limited digital literacy or access to technology?**
## Breaking Down the Barriers: An Interview on Financial Inclusion in Mexico
**Introduction:**
Welcome to World Today News. Today, we’re delving into a critical issue facing Mexico – financial inclusion. A new study by Nu, the SXXII Law and Technology Civil Association, and the Brazilian Embassy sheds light on the stark reality of financial access in the country. Joining us today are two experts: [**Guest 1 Name and Title**] and [**Guest 2 Name and Title**], who will offer insights into the challenges and opportunities for building a more inclusive financial system.
**Section 1: The Landscape of Financial Exclusion**
* **Interviewer:** The news is striking: only 11% of Mexicans have access to credit cards. Can you both elaborate on the extent of financial exclusion in Mexico, highlighting the factors contributing to this low figure?
* **Guest 1:**
* **Guest 2:**
* **Interviewer:** The report also highlights a gender and geographic divide in financial access. Could you please explain how these disparities manifest and what unique challenges they pose?
* **Guest 1:**
* **Guest 2:**
**Section 2: The Role of Technology and Innovation**
* **Interviewer:** The study emphasizes the potential of technological innovation to bridge the financial inclusion gap. What specific technologies hold the greatest promise for overcoming these barriers, particularly for women and rural communities?
* **Guest 1:**
* **Guest 2:**
* **Interviewer:** Could you discuss examples of successful Fintech initiatives that are already making an impact in Mexico or other developing nations? What lessons can be learned from these examples?
* **Guest 1:**
* **Guest 2:**
**Section 3: Policy Imperatives and the Path Forward**
* **Interviewer:** The report calls for a “high-impact public policy” to promote financial inclusion. What concrete policy changes do you recommend to foster an enabling environment for both traditional and innovative financial institutions?
* **Guest 1:**
* **Guest 2:**
* **Interviewer:** Regulatory changes seem crucial. Can you delve into specific adjustments to the Fintech Law that could facilitate broader access to financial services, specifically mentioning the potential for new categories of digital financial entities?
* **Guest 1:**
* **Guest 2:**
* **Interviewer:** Looking ahead, what role can the new Mexican government play in championing financial inclusion and promoting collaboration between all stakeholders?
* **Guest 1:**
* **Guest 2:**
**Conclusion:**
* **Interviewer:** Thank you both for your insightful perspectives. It’s clear that addressing financial exclusion in Mexico requires a multifaceted approach. By embracing technology, implementing supportive policies, and fostering collaborations, we can empower millions of Mexicans and build a more inclusive and prosperous society.
**Outro:**
**For more in-depth analysis and discussion on this important topic, please visit our website at world-today-news.com.**
