· Today we have a new generation social policy that goes beyond welfarism to focus on increasing its beneficiaries’ productive capacities, he said.
· The point is for them to have savings accounts, buy insurance or get a loan to achieve any life plan they create. The point is also to have different ways to pay for the provision of various services, he explained.
· During this administration, nearly 7 million women living in poverty have been incorporated into the financial system and over 6 million beneficiaries now have life insurance for female householders, he said.
During his presentation of the National Policy on Financial Inclusion today, President Enrique Peña Nieto said that an, “Inclusive Mexico is a country where rights are not only an ideal but a permanent reality in the everyday lives of all its habitants”.
“It also means having a basic floor of welfare so that every family can move forward and progress, in the north, west, center or south of the country,” he added.
He declared that, “Today we have a new generation social policy which puts welfarism to one side to focus on increasing its beneficiaries’ productive capacities”.
Thus, he added, traditional social development programs: better food, access to health services and decent housing, “complement and strengthen policies that promote quality education and economic productivity”. The latter category, which focuses on generating and strengthening people’s sources of income, “Includes the National Financial Inclusion Policy,” he declared.
At the event, held at the National Palace, the president said that through this new policy, “We seek to ensure that all Mexicans, without distinction, have access to the financial system.”
“The point is for them to have savings accounts, buy insurance or get a loan to achieve any life plan they create. The point is also to have different ways to pay for the provision of various services,” he explained.
He explained that all this, “Enables families to be less vulnerable and fragile, and have less of a risk of losing their assets, or possibly falling into poverty”.
President Peña Nieto declared that today we know that, “In 2012, 56 percent of the population had some product, savings or insurance product, and that this figure increased to 68 percent in three years; in other words, an additional 12.7 million people were incorporated into the financial system. With information like this, we can make better decisions as a country”.
He said the National Financial Inclusion Policy, “Links the government’s and the private sector’s efforts through six axes”:
FIRST: Financial education. “So that people know how to take advantage of being in the financial system: from how to open an account, through using a credit card to investing their money. The point is not simply to incorporate users into the financial system, but to have instruments that will be useful and also for them to know how to use them.
”To encourage this culture from an early age, the Education Secretariat will promote financial education in the basic education curricula.” Likewise, programs such as PROSPERA, or Women SME or Youth Credit already include financial training courses, while our consulates give courses to our fellow countrymen on the financial system, particularly in the United States”.
SECOND: The use of technological innovations for financial inclusion. “The point is to take advantage of new technologies such as the Internet, smart phones and mass data analysis to bring banking services and payment methods to large segments of the population”. In other words, he added, “To take advantage of different technologies and platforms to use digital services, or digital platforms to achieve greater financial inclusion and enable more people to be able to pay for their services through their smart phones”.
”Today, thanks to Telecommunications Reform, Mexico is advancing to achieve better coverage, lower costs and higher quality services. A cutting-edge digital platform is opening up new opportunities to incorporate the excluded population into the financial system and facilitate the interconnectivity of digital financial services.
“If there is anything that significantly supports financial inclusion, it is two sweeping reforms: Financial Reform, which is designed to achieve higher levels of credit throughout the country for more people and at better rates, which is leading to increased competition; and Telecommunications Reform, which is enabling the population to have greater connectivity and the use of digital services”.
THIRD: The development of financial infrastructure in underserved areas. “Mexico obviously remains a country of contrasts. In our country, prosperity and marginalization, progress and backwardness continue to coexist.
“This government has proposed to begin narrowing these gaps and ensure that all the regions in Mexico have the same opportunities, including access to financial services. To do this, we have built alliances with non-financial players, such as retail chains, for example, and will increase Development Bank services in the most isolated villages”.,
FOURTH: Greater access to and use of formal financial services for the underserved and excluded population. “During this government, nearly 7 million women in poverty have been incorporated into the financial system, through the spread of government transfers via debit cards. Likewise, more than 6 million beneficiaries now have life insurance for female householders. Previously excluded populations now also benefit from business loans at preferential interest rates, through the Women SME and Youth Credit Program”.
FIFTH: Protection mechanisms for financial service users. “The Policy prioritizes the promotion of safer savings, good service by institutions, and clearer rules and conditions for financial products and services. This axis is based on the institutional strengthening of CONDUSEF, which is practically a prosecutor's office, the National Commission for the Protection and Defense of Financial Service Users, for those within the financial system.
“This strengthening occurs as a result of financial reform, and also promotes personal data protection to prevent identity theft, among other crimes”.
SIXTH: The production of data and measurements to assess financial inclusion. ”Having data and periodic evaluations of public policy is certainly a fundamental instrument we must always bear in mind. We will therefore continue preparing reports such as the National Survey of Financial Inclusion, and supporting academic research projects on this issue”.
The president expressed his confidence that the implementation of the National Policy on Financial Inclusion, “Will result in greater peace of mind for workers saving for retirement or wishing to achieve any life plan.” This will be reflected in the satisfaction of a family getting an affordable loan to purchase a house, or buy a car or any product that is useful and necessary for their family.”
“Greater financial inclusion will also mean that more Mexicans have funding to set up their own business. I am convinced that by working together, users, banks and authorities can ensure that Mexico becomes an increasingly inclusive country,” he said.
FINANCIAL INCLUSION FOCUSES ON DEVELOPMENT AND HUMAN EMPOWERMENT: UN
The Special Advisor to the United Nations Secretary General on Financial Inclusion for Development said that, “In essence, financial inclusion focuses on development and human empowerment. Its aim is to responsibly and sustainably provide access to universally affordable financial services”.
She noted that, “It plays an important role in promoting equitable growth and meeting development goals such as poverty reduction and food security”.
Queen Máxima of the Netherlands also said that, “Through the access to and use of tools such as savings, insurance, payments and credit, families can be better prepared for adverse events in life, increase their resilience and reduce poverty levels.”
She explained that, “Small businesses can become larger businesses, thus increasing families’ income-earning capacity. And as a result, societies and economies can grow, and become stronger and more inclusive”.
The implementation of Mexico’s National Financial Inclusion Policy, “Will require strong leadership close cooperation that includes both public and private actors, and very careful planning,” he added.
The Special Advisor to the United Nations Secretary General called for particular attention to be paid to four measures for implementing this policy: increase access points and mobile accounts to significantly boost financial inclusion in Mexico; improve identification mechanisms; choose and apply different, innovative methods to ID cards such as biometric identification; social networks, and authentication through telephone transactions.
She said that in Mexico, although small and medium-sized businesses generate 71 percent of employment and up to 51 percent of revenues from the business sector, they currently only account for 11 percent of banks’ total loan portfolio, which is why it is very important to pay particular attention to this sector and facilitate better credit infrastructure.
“We assure you that we are going to monitor Mexico very closely and I would like to say that I am very proud of the process that has begun in Mexico and you can be very proud of yourselves," concluded the UN representative.
TELECOMMUNICATIONS REFORM IS CREATING important foundations for the Mexican financial system TO BE ABLE TO REACH PREVIOUSLY INACCESSIBLE AREAS: LUIS VIDEGARAY CASO
Secretary of Finance and Public Credit (SHCP) Luis Videgaray Caso said that Telecommunications Reform is creating the most crucial foundations for the Mexican financial system to reach previously inaccessible areas, and for these efforts to crystallize, “We need to generate a true ecosystem of innovation, competition and, of course, proper regulation”.
He said that the progress telecommunications is experiencing in our country is perhaps the most important instrument for achieving financial inclusion.
“We want Mexico to be a place where the use of new technologies flourishes, where banks use information technology, big data analysis and artificial intelligence, but also for there to be new companies in what we call FINTEC companies that challenge the established system, which also innovate and generate new solutions for products. And we want them to get to places that the traditional system cannot reach. That is how ambitious and important this strategy is,” he said.
THE FACT THAT MORE MEXICANS can save, invest or access credit IS ONE OF THE firm intentions OF PRESIDENT ENRIQUE PEÑA NIETO’S GOVERNMENT: AGUSTÍN CARSTENS
Governor of the Bank of Mexico Agustin Carstens, said that, “President Peña Nieto has emphatically stated the importance of democratizing the formal financial system in Mexico and the firm intention of his government, reflected in the National Development Plan, to ensure that more Mexicans can save, invest, have credit or be protected by insurance.”
He said that, “In response to this call and as part of the framework of financial reform, Mexico has made significant progress in overcoming the major obstacle to growth and development, which is the exclusion of millions of Mexicans from the benefits of financial intermediation. It was precisely to expand this progress that the National Policy on Financial Inclusion was designed”.
He said that the importance of this policy, “Lies in its ability to unreservedly support those who do not yet enjoy all the advantages and benefits provided by a solid financial system, with cutting edge use of the latest technologies, which is well capitalized, regulated and growing.”
Moreover, “It seeks to empower people through proper education, so that they can effectively be able to use and have access to a system that could lead them to modernity”.
“The National Financial Inclusion Policy President Peña Nieto has presented today undoubtedly provides an appropriate frame of reference so that all those involved can combine our efforts to achieve the common good.”