Fintechs fail to make a dent in Mexico as cash remains king

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MEXICO CITY : Financial inclusion levels in Mexico have worsened since 2018, official statistics show, despite a burst of financial startups hoping to 'bank the unbanked'. Mexicans with at least one financial product last year fell 0.5 per cent to 67.8 per cent compared with 2018, the National Inclusion R

MEXICO CITY : Financial inclusion levels in Mexico have worsened since 2018, official statistics show, despite a burst of financial startups hoping to 'bank the unbanked'.

This comes despite hundreds of 'pro-inclusion' fintechs arriving in Mexico since 2016, offering easier ways to sign up or no-fee banking, including Klar, Keusiki Pay, Stori, and Albo. "Fintech innovators have not yet delivered on their potential to build solutions that are centered on underserved communities," she told Reuters, adding that fintechs mostly target Latin America's metropolitan elite, rather than poorer, rural communities where banking infrastructure is most needed."Until more digital players become [licensed as] banks, inclusion will continue to hit a ceiling," said Juan Guerra, Revolut's Mexico chief executive.

At the same time, the proportion of Mexican adults with bank accounts edged up two percentage points between 2018 and 2021 to 49.1 per cent, while card usage for larger transactions increased to a modest 12.3 per cent.

 

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