Financial Inclusion, Cashless Incentives: The Week in Finance

Nearshoring continues to make waves, opening doors to Mexican SMEs. However, their high dependance on cash payments and their limited access to financial services limit their growth. To help address these problems, fintechs and financial companies are launching new products that strive to close these financial gaps. 

Read more in this Weekly Roundup!

What do SMEs Need to Take Advantage of Nearshoring?

Despite the importance of SMEs in the Mexican economy, they face hurdles in accessing financial services. Mexico has one of the lowest levels of digitization in payments in Latin America at 23%, according to Ualá Bis. The country also has one of the largest credit gaps, with 35% of companies lacking access to financing.

Mastercard and Galileo Technologies Push Cashless Forward

Galileo Financial Technology has introduced a content platform that aims to shed light on the hidden costs of cash usage and promote the benefits of a cashless economy, particularly in Latin America. As cash is still prevalent in the region, the program will explore situations where problems for consumers and businesses, both big and small, arise because of cash dependency.

Tax Incentives Attract Investment to Interoceanic Corridor

The SHCP has issued guidelines to promote responsible investment and development in the Isthmus of Tehuantepec. The goal is to create quality jobs in the region through tax incentives. These incentives aim to benefit taxpayers engaged in productive economic activities within the Development Poles of the Isthmus of Tehuantepec.

Expert Opinion

Establishing Counterbalances for the Board of Directors

Establishing counterbalances in corporate governance is essential to achieve an efficient and value-generating model, explains Javier García, Managing Partner, Clever BoD. These counterbalances help align organizational culture with ethical principles, ensure accurate financial reporting and evaluate internal controls, ultimately promoting effective corporate governance. 

The True Value of a Strong Startup Networking for Latin America

Latin America is increasing its appeal as a startup hub due to its young population, growing purchasing power and underserved market, explains Fabrice Serfati, General Partner, IGNIA Partners. He delves on the positive changes in the region’s entrepreneurial ecosystem, particularly the strengthening of support networks that improve the odds of success for startups.