BRUSSELS, 23 October 2017 – BANSEFI, as a development bank, works on enlarging financial inclusion of those coming back to Mexico. Given the new migration policy in the United States, Mexico expected an increased number of Mexicans being repatriated.
Somos Mexicanos (We are Mexicans) is part of the protection mechanism established by the government to strengthen reinsertion of Mexicans coming back from the United States to their homeland. It aims at enhancing and protecting social and cultural bonds for a more dignified and productive return.
“Financial and social inclusion of repatriates will have a major impact on families' well-being and Mexico's development," said Miguel Carballo, Deputy General Director of Corporate Strategy at BANSEFI.
Mexicans being repatriated may not hold official documents
Their assets remain in the United States
They lack of financial inclusion in Mexico
To address this situation, some pillars must be built to provide the necessary conditions to allow customers to reap the benefits of the formal financial market.
On the ground, BANSEFI settled several stalls at points of repatriation in collaboration with the National Institute of Migration (INM). There are especially set up in airports along the American border, from Tijuana to Tamaulipas. At Mexico City International Airport only, three times a week, a plane lands repatriating Mexicans. These BANSEFI stalls allow them to open a bank account, change currency, deposit money or access other services such as micro insurance.
María Antonieta Paz Rotunno, Adviser on Financial inclusion and special projects at BANSEFI, explains that financial literacy is essential is such cases. Product innovation also leads to complex products and services: “The more complex the financial product or service, the more comprehensive the information that must be presented to customers". Another obstacle is information asymmetry: “Customers also need means to reach information, they must be taught about tools at their disposal to evaluate the information available about options, responsibilities and risks to which they are subject".
Financial education is not an antidote for predatory practices but will always improve customers´ awareness and protection from such practices. It reduces the vulnerability of customers from predatory practices, and this is what BANSEFI aims at. María Antonieta Paz Rotunno summarizes financial education as such: “Financial education allows customers to overcome uncertainties in the financial sector. It should be present throughout the duration of any financial inclusion program. Innovative products and new financial channels should provide financial education, a tutorial or be user friendly, as it may apply."