This paper explores the reasons why digital payment services in Mexico are used to a much lower extent than would be expected considering the country’s level of development and the authorities’ efforts to expand these types of services during the past two decades.
The purpose of this report is twofold: to identify and discuss a set of challenges, and to develop key recommendations. The overarching goal is to provide support to policymakers in the region who may face difficult decisions to ensure that banks play a constructive role and support families and fir...
Financial inclusion is a fundamental pillar of development. But Mexico poses a conundrum. In many respects it has been successful at growing its economy and integrating with global markets. Yet among its peers in Latin America, Mexico is the worst-performing at financial inclusion relative to its in...
Latin America’s economic growth has declined significantly in the last decade. Although a variety of causes can potentially explain this result, there are some structural weaknesses that distinguish Latin America from other regions in the developing world.
Onerous KYC documentation requirements are widely recognized as a potential constraint to full financial inclusion. However, it is sometimes difficult to judge the extent to which this constraint is a serious or binding one, relative to others. The paper considers this question, distinguishing betwe...
Mexico’s financial risks and the policies being adopted by the new administration cannot be adequately assessed without recognizing key features that characterize certain initial conditions.