Home to one of the most diverse and robust financial industries in Latin America with hundreds of participants ranging from large international and local banks to a fast-growing fintech presence. It is also a starting point for startups on their way to expanding operations in the region. Yet the country’s progress towards financial inclusion in recent years has been limited: half of the adult population does not have a bank account, and credit as a proportion of GDP reached 36.9% in 2019, significantly lower than its peers in the region. Although in recent months the landscape of inclusion has strengthened, in part because new digital players have come up with solutions to deal with the consequences of the pandemic, there is still much to be done. Experts say poor connectivity infrastructure, the informal economy, and the high cost of services are weakening efforts by local technology companies, banks and regulators to improve financial inclusion.
Matter is a huge struggle for Mexico, despite it being a country with a large population, says Luis Silva, manager of Mexico’s fintech association. Initially, the enactment of the Fintech Law and the development of the CoDi payments platform were seen as drivers to bridge the gap. Yet more than a year after the launch of CoDi, according to official data, the tool has about 5.1 million bank accounts opened, only 30% of the goal set for 2020. The number of bank accounts in the country increased by a timid 4.1% over the course of 2019, according to the Annual Financial Inclusion Overview 2020, prepared by the National Banking and Securities Commission.