Expanding access to finance to boost growth and reduce inequalities in Mexico

The access to formal financial services in Mexico is particularly low. Access also significantly unequal across income levels, gender, between rural and urban areas regions. SMEs bank credit low, hampering firms’ ability grow innovate. use of cash informal still widespread, especially areas, where infrastructure underdeveloped. diffusion digital slowly advancing but remains hindered by a relatively low level literacy divide. Expanding finance would enable Mexican households invest education health, better manage shocks smooth consumption. It firms more, increase productivity create jobs. Low-income households, small more disadvantaged regions benefit, as it unlock new economic opportunities for them. Boosting competition the banking sector facilitate lowering interest rate margins. Upgrading regulatory framework system help quality services. potential fintech yet be materialised, which further bring wider segments population. Strengthening larger traditional