Financial Services, Technology and Social Programs

Access to financial intermediation offers people the possibility to obtain fundamental financial services as savings accounts, microcredits and life insurance. In Mexico, access to financial services provided by commercial and state-owned banks is considered limited for regional standards (CEPAL).  Geographically speaking, 52% of municipalities don’t have access to formal financial services (Martinez Trigueros 2008).

In 2011, President Calderon announced the largest bancarization program in the world to take place in the last year of his administration. The goal was to incorporate 6.5 million beneficiaries of the “Oportunidades” and “70 y Mas” Conditional Cash Transfer Programs (CCTP) into the financial systems in less than 2 years. By august 2012, the Ministry of Social Development (SEDESOL) was announcing the accomplishment of the goal.

The success of the bancarization program in a short period rested on three elements. First, the attention mechanism of CCTP in Mexico is operated in a way that every two months, every beneficiary is summoned to a convenient meeting point to receive the services and subsidies according to each program. Secondly, using Point of Sale (POS) devises with satellite connectivity and storage capacity, a financial transaction could be realized in a remote location, and updated in the central database by synchronizing the information at a later point. Finally, through the cascade training process used in both CCTP, the benefits of financial services were communicated to the target population at a short period of time.

If you want to know more about the Bancarization process, please visit the following websites:

About K. Nishikawa

MPA Candidate 2012, Cornell University
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