Beyond the Score: How AI Powers Mexico’s Next Retail Revolution

Mexico faces a significant challenge in financial inclusion, with over half of the population lacking access to traditional financial services. AI-driven tools present a promising solution by enabling more inclusive and personalized credit decisions, improving access to financial products.

“Approximately 30% of Mexicans live in financial vulnerability, and 58%—around 75 million people—are excluded from traditional financial products. This problem is compounded by a banking system that does not cater to the needs of the unbanked population, which constitutes 50% of Mexican society,” explains Diederick Van Thiel, CEO and Co-Founder, AdviceRobo. “As AI-powered solutions evolve, they can bridge this gap by providing more inclusive credit assessments and opening access to financial products that were previously out of reach for many Mexicans.”

According to AdviceRobo, Mexico's economic growth is expected to stagnate at 0% by 2025, placing additional pressure on retailers and financial institutions already grappling with inflation and high interest rates. For businesses, this makes it even more difficult to grow and retain customers in an increasingly challenging market. The lack of access to proper credit, compounded by the limited scope of traditional credit scoring models that focus solely on past financial behavior, only intensifies these problems.

“Many businesses continue to struggle in a market where credit access is limited, and traditional credit models fail to recognize the true potential of consumers,” says Van Thiel. “As a result, these businesses face challenges in retaining customers and driving growth. Without improved credit models, a large number of consumers remain underserved, which puts further strain on retailers and financial institutions to rethink their customer engagement strategies.”

To overcome these challenges, Van Thiel proposes a human-centered AI solution that delivers more inclusive and personalized credit assessments. This approach employs a psychometric and behavioral scoring model, which integrates traditional financial data with factors such as personality and consumer behavior. This method not only mitigates risk but also improves credit acceptance by 30% and lowers risks by 20%, ultimately increasing credit access for non-traditional consumers and newcomers to the financial system, according to Van Thiel.

AdviceRobo’s technology offers granular personalization for credit decisions by using predictive models that identify high-potential customers. This system can be easily implemented through ready-to-integrate APIs, allowing retailers, banks, and credit bureaus to adopt it seamlessly. This approach optimizes sales, enhances customer retention, and enables retailers to make more informed credit decisions that align with emerging consumption patterns, says Van Thiel.

“Our human-centered AI solution is designed to address the root causes of these challenges by offering a comprehensive view of consumer behavior,” explains Van Thiel. “By incorporating personality traits and psychometric data alongside traditional financial information, our model provides a clearer and more accurate picture of creditworthiness. This not only fosters inclusivity but is also more effective at reducing risk and increasing approval rates for consumers who are new to the financial system.”

Despite the advantages of human-centered AI, there are still obstacles to widespread adoption in the Mexican market. One significant challenge is the resistance to change from traditional financial institutions and retailers, many of which have relied on conventional models for years. A major hurdle is the lack of trust in automated decision-making, with concerns over AI being biased or lacking transparency.

Moreover, integrating these systems into established infrastructures presents technological challenges. While AdviceRobo’s solutions are designed for easy integration through APIs, issues such as system compatibility and the need for user education and training remain. Although the AI is explainable and transparent, the evolving regulatory landscape in Mexico could create uncertainty around the widespread adoption of such technologies.

“Adopting AI at scale in Mexico presents a set of unique challenges. Traditional institutions are often reluctant to embrace change, and the fear of bias or lack of transparency in AI decisions remains a barrier to broad acceptance,” says Van Thiel. “Additionally, there is an urgent need for education and integration efforts to ensure these systems fit smoothly into existing infrastructures, which is often a slow process.”

AI has the potential to revolutionize how companies approach credit and financial services. Van Thiel predicts that in the coming years, the adoption of human-centered AI technologies will increase, especially as consumers in the gig economy and informal workforce seek more accessible credit solutions.

The Mexican market is ripe for the expansion of inclusive and personalized financial models. Solutions like AdviceRobo’s will enable retailers and lenders to tap into a new generation of consumers who are not currently served by traditional financial systems. In the long run, the combination of explainable AI and a focus on human behavior is expected to create not only a more inclusive financial ecosystem but also a positive economic impact by improving access to credit for millions of Mexicans.

“Looking ahead, we see a tremendous opportunity for growth in Mexico. As the gig economy and informal workforce continue to expand, more consumers will need alternative credit solutions. This is where human-centered AI can play a transformative role in unlocking new financial opportunities,” concludes Van Thiel.