Image credits: Chris Liverani
Weekly Roundups

BBVA, Banxico Analyze Mexico’s Financial Areas

By Sofía Hanna | Thu, 06/03/2021 - 14:53

BBVA and Clarity AI analyzed the population’s credit card and cash purchases, using a range of econometric and machine learning models. Through this analysis, published in “Cash vs. Card Consumption Patterns: A Big Data Approach,” the bank aims to contribute to social welfare programs, policy-making and other economic analyses. “The traditional survey data has some well-known shortcomings. This work proposes an alternative approach using Big Data to track consumption combining two complementary datasets: registering cash operations and registering card transactions and electronic payments. The cash consumption dataset is derived from digitized POS receipts, while the one used for card consumption comes from transactional data. Both datasets provide valuable insights for the analysis thanks to their high time, geographical and product-level granularity.” 



Interested in more? Here are the week’s major headlines in Finance!


  • BBVA claims that the increase in inflation is temporary. Reasons affecting the inflation rate, claims the bank, include the fact that while the US economy is recovering at accelerated rates, it still shows significant levels of slack. Moreover, the implementation of President Joe Biden’s plans is expected to result in increases in the country’s potential growth rate. 



  • Banxico analyzed the response of Mexican to recent economic changes and released its report in “A Sentiment-based Risk Indicator for the Mexican Financial Sector.” Banxico analyzed tweets made during the 2006-2019 period to identify messages in response to positive or negative shocks in the Mexican financial sector. Banxico noticed that the response on Twitter is positively correlated with an increased risk of financial markets, stock market volatility, sovereign default risk and exchange rate volatility.  



  • Banxico’s 2020 annual report on the infrastructure of financial markets discusses the relevant changes and advances regarding the policy, regulation, development and operation of the Financial Market Infrastructures (IdMF) in Mexico. The report highlights the implications of the COVID-19 pandemic and the confinement and social distancing measures in each of the IdMF functionalities. 


The data used in this article was sourced from:  
BBVA, Banxico
Sofía Hanna Sofía Hanna Junior Journalist and Industry Analyst