Mexico Financial Inclusion DPF

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The development objective of the Financial Inclusion Development Policy Financing (DPF) Project for Mexico is to support the government’s efforts to increase financial inclusion. The DPF supports Mexico’s efforts to deepen financial inclusion, which has been a critical bottleneck for growth and poverty reduction. The new authorities and the recent systematic country diagnostic (SCD) have highlighted the need for further financial inclusion as a way to foster inclusive growth. The new authorities and the SCD have also highlighted the need to reduce the significant household and regional disparities in access to finance. The financial inclusion reforms undertaken by the government are expected to support adaptation climate co-benefits. The financial sector plays a key role in managing these risks. Using the typology introduced by the 2014 World Development Report on managing risk for development, the measures supported by this operation provide access to: (i) innovative, technology-based products such as market insurance (through Fintech); (ii) an expanded menu of products for the unbanked population provided by State Development Banks, including self-insurance (deposits); and (iii) electronic payments systems that offer a safe and efficient alternative to cash (self-protection).