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Mexico’s Fintech Revolution: A Path to Financial Inclusion

Mexico has taken a significant step towards financial inclusion with the launch of its legal and institutional framework for fintech, making it the first country worldwide to do so. This move is expected to expand access to financial services through innovation, providing an opportunity for underserved communities to participate in the economy.

The Journey So Far

According to World Bank estimates, 93 requests for authorization to operate as ITFs are currently in progress, with 59 requests from IFPEs and 34 from IFCs. Already, 69 of these companies are operating under the transitory provisions of the Eighth Transitory Provision of the Fintech Law.

Partnerships and Collaborations

The World Bank has played a crucial role in supporting Mexico’s fintech sector through its Country Partnership Framework (2020-2025), which aligns with the findings of the 2016 Financial Sector Assessment Program (FSAP). The framework aims to develop a more inclusive and competitive financial sector, tackling key recommendations for reducing business regulation and improving access to credit for small and medium-sized enterprises (SMEs).

  • Technical assistance from the International Finance Corporation (IFC) has been provided to reduce business regulation and improve access to credit for SMEs.
  • The IFC has also provided financing to financial intermediaries to support credit to SMEs.

Beneficiaries

The beneficiaries of the World Bank’s support for expanding financial access include:

  • Women
  • Youth
  • Indigenous populations
  • People living in marginalized and underserved areas of Mexico

Approximately 140,000 micro, small, and medium-sized enterprises (MSMEs) have received 174,000 credits from about 200 eligible financial institutions.

Success Stories

The World Bank’s support has helped many beneficiaries expand their businesses, increase earnings, and better support their families. Some examples include:

  • Maria Morales, a handicraft producer, who was able to increase her business and hire employees after accessing credit through the program.
  • Enrique Beltrán, a cotton producer, who improved his business and was able to finance his daughter’s university studies.

Moving Forward

The World Bank is committed to continuing its support for:

  • Institutional, policy, and financial access reforms in Mexico
  • Underserved groups and regions
  • Policy dialogue and lending underpinned by strong analytics and advisory work

With faster progress in access to traditional financial services and innovative approaches to leveraging technology, the World Bank believes that Mexico can meet the current COVID-19 crisis and achieve a faster, sustained recovery.

Learn More

For more information on Mexico’s fintech revolution and the World Bank’s efforts to promote financial inclusion, please visit: