Tech’s Role in Financial Inclusion: The Week in Finance

Technology plays a crucial role in fostering financial inclusion in Mexico, as emphasized by a MBN expert contributor this week, who also underscored the significance of SMEs in this endeavor. Meanwhile, discussions among leaders delved into topics such as inflation, high interest rates, and the potential impact of presidential elections in both Mexico and the United States, as part of the Finance Leadership Talks. Furthermore, Mexico's Stabilization Fund (FEIP) experienced a notable decline in 2023, plummeting to MX$40.52 billion from MX$279.77 billion in 2018.

Stay updated with more insights in finance this week!

The Role of Technology in Mexico's Financial Inclusion

Erez Saf, President, Pyemes Capital, writes about the critical importance of financial inclusion for SMEs in Mexico, emphasizing the challenges they face in accessing traditional financing avenues. By leveraging digital platforms and innovative lending practices, fintech startups are revolutionizing the financial landscape, offering personalized and accessible financial services that empower SMEs to thrive in an increasingly digital economy.

Mexico’s Growth Not Sustainable: Finance Leadership Talks

Experts during the Finance Leadership Talks delved into Mexico's economic landscape, highlighting key factors such as the impact of US and Mexican elections, persistent inflation, and high interest rates. Bloomberg LP emphasized potential risks, including USMCA criticisms and the consequences of a Trump re-election, such as reduced oversight, tariff threats, and economic downturns, while others like Luis de la Calle underscored the natural progression of North American integration.

Mexico's FEIP Drops 88% Since 2018

Mexico's Stabilization Fund (FEIP) saw a significant decline in 2023, dropping to MX$40.52 billion from MX$279.77 billion in 2018, attributed to accelerated depletion during the current administration, notably amid the COVID-19 crisis in 2020. To bolster the fund, recent amendments to the Federal Budget and Fiscal Responsibility Law introduce new revenue sources, including savings from public debt costs and additional government contributions.

Mercado Pago, Spin, Tu Dinero Digital Top IFPEA: CONDUSEF

Mercado Pago, Spin by Oxxo, and Tu Dinero Digital have been recognized as the top-rated Electronic Payment Fund Institutions (IFPE) following evaluations by Mexico's CONDUSEF, addressing concerns raised by its president regarding complaint levels in the sector. Through comprehensive evaluations, all six assessed entities met standards for financial transparency and quality information for users, involving meticulous reviews of client files, contracts, advertising materials, and website content. 

Fitch Ratings Adjusts Mexico’s 2024 Growth Forecast to 2.2%

Fitch Ratings has adjusted Mexico's 2024 growth forecast from 2.4% to 2.2%, attributing it to decreased investment and a slowdown across various sectors observed in the previous year's final quarter. While investment is expected to sustain growth, it won't match the rapid pace seen in 2023, with the US recovery aiding Mexico's economy, albeit hindered by high-interest rates.