RTPs to Revolutionize Transactions: The Week in Finance

In Mexico, real-time payments are gaining momentum with CoDi, offering opportunities for companies to cut transaction costs and offer consumers more payment options, according to experts. Meanwhile, remittances set a new record for February, but analysts are cautious about a sluggish flow. Additionally, the country’s fiscal deficit has been reduced in the Pre-Criteria of Economic Policy 2025.

Read more this week in finance!

Real-Time Digital Payments: The CoDi Case in Mexico

The introduction of real-time digital payments (RTD), exemplified by CoDi, is revolutionizing financial transactions in Mexico, offering users and businesses enhanced convenience, security, and efficiency, writes Jaime Márquez, Executive Director of Business Development, STP. With over 9 million transactions recorded in four years and significant growth in adoption, CoDi is reshaping the digital economy in Mexico, providing opportunities for businesses to save on transaction costs and offering consumers additional payment options. 

Mexico's February Remittances Hit Record US$4.5 Billion

Remittances to Mexico surged to a historic high of US$4.51 billion in February, yet analysts warn of a potential slowdown as growth rates ease, attributed to factors like the moderation of economic activity in the United States. Despite 46 consecutive months of growth, recent trends suggest a deceleration, with remittance inflows contracting by 1.4% month-on-month and cumulative growth at its lowest since 2015.

BBVA Tops as Best Investment Bank in Spain, Mexico, Peru

Global Finance magazine has awarded BBVA the title of "Best Investment Bank" in Spain, Mexico, and Peru for 2024, marking the ninth consecutive year of recognition in Spain and the eighth in Mexico. BBVA's commitment to digitization and sustainability, coupled with its client-centric approach, has contributed to its success. 

Mexico Targets 2.5% GDP Fiscal Deficit by 2025

The Mexican Government plans to reduce its fiscal deficit from 5% to 2.5% of GDP in 2025, with a targeted spending cut of MX$833.6 billion compared to 2024, according to the Pre-Criteria of Economic Policy 2025. The Ministry of Finance assures that this reduction will not affect social spending or public service provision, emphasizing transparency in planned cuts, which are expected to reach nearly MX$1 trillion. 

Banco del Bienestar's 2023 Profits Down by 50%

Banco del Bienestar reported a 50.7% decrease in earnings in 2023, with a net result of MX$412 million, largely attributed to a substantial 72% increase in administrative expenses, reaching MX$9.511 billion by year-end. This surge was primarily driven by investments in surveillance, technology, and cash transportation, with technology expenses rising to MX$2.2 billion, marking a 22% increase from the previous year.