Infonavit Suspends Credit Lines, Invests in Digitalization

The Institute of the National Housing Fund for Workers (Infonavit) paused its credit lines as it revamps its systems and loans. Meanwhile, SMEs in Mexico face both challenges and opportunities in the complex post-pandemic economy but entrepreneurs continue innovating and disrupting multiple niches.

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Tribal Continues Developing Financial Tools

Sonia Michaca, Regional General Manager, Tribal, explained that in Mexico there are over 5 million companies registered in INEGI but less than 10 percent of them have access to credit. “We adapted the underwriting with AI, which is now one of our main differentiators, and entered these emerging businesses because we saw that SMEs in Latin America were not being backed by banks. As this sector has been one of the most affected by the pandemic, it needs access to credit to continue growing,” said Michaca.

Fintech Helps Ukrainian Refugees

Revolut launched a “donations campaign to support the Red Cross Ukraine appeal, which raised over €1 million in 24 hours and over €10 million so far,” said CEO Juan Miguel Guerra. Revolut also offered accounts for Ukrainian refugees for those affected by the conflict, allowing them to receive aid and access funds fast and for free. For people in vulnerability, this support represents a true lifeline.

Infonavit Pauses Credit Lines

The institute paused its credit lines to renew its financing schemes for the remodeling and equipment of eco-friendly technologies. The credit modalities temporarily paused include Line IV "Remodelavit" and Green Mortgage.

Infonavit and other Mexican public institutions such as the Ministry of Finance and Public Credit (SHCP), the Association of Banks of Mexico (ABM) and the National Banking and Stock Commission (CNBV) are also investing large sums to improve credit programs that will support financing.

SME Credit Increases Financial Inclusion

Paolo Fidanza, CEO and Co-Founder, KEO, explained that most fintech innovations have focused on consumers, leaving SMEs behind. KEO adapted buy now, pay later (BNPL) schemes to the B2B industry, offering solutions for current needs that can be paid afterwards. KEP’s product allows SMEs to digitally finance key inventory purchases via a virtual KEO-American Express card that allows a lock for specific purchases. The company also focuses on financial education because few SMBs are familiar with credit management.

SMEs Help Mexico’s Growth: Mexico Business Forum

Russia’s invasion of Ukraine and the COVID-19 pandemic affected all of Mexico’s growth forecasts. However, public and private institutions are joining forces seeking to tackle a variety of problems that are holding back the country. Economic growth, SMEs and Fintech will be some of the topics discussed in Mexico Business Forum 2022. The event is now hosted on Zoom, breaking geographical barriers and welcoming global industry leaders while reducing COVID-19 related risks or possible outbreaks.