Financial Education Conference in Mexico City

The IME - Instituto de los Mexicanos en el Exterior (The Institute for Mexicans Abroad) regularly hosts Jornadas Informativas (Informative Conferences) with invited community leaders from Mexico, the United States and Canada. On behalf of MAF, I attended the 66th Jornada Informativa on Financial Education from April 21st to April 23rd in Mexico City. The Jornada is structured around an agenda in which participants exchange ideas, projects and programs for Mexican communities abroad.
One of the most important goals of the IME is to assist Mexicans, both those living abroad and those in Mexico, to have access to mainstream banking products and asset building opportunities Conference participants represented government agencies, international organizations, the private sector, non-profit organizations, and academic institutions. Only through a tri-national (U.S., Mexico and Canada) strategy, can banking the un-banked become a reality for the millions of Mexicans that have never had a bank account. Mexican banks such as Banco de Mexico and BANSEFI acknowledged the importance of providing both branches and ATMs to the rural parts of Mexico. While many Mexicans living throughout the U.S. have successfully opened bank accounts using their Mexican Consular Identification card, many are still using fringe financial services to send remittances to their family and friends in Mexico. Sending money directly to the receivers' accounts is the most economical and efficient way of sending remittances. Unfortunately millions of remittance receivers in Mexico do not have bank accounts, debit cards, and/or access to even an ATM machine. The IME and the Secretaria de Relaciones Exteriores (SRE) are working together so that a larger share of Mexicans, especially those living in rural areas, can have access to basic banking services and products.
The Mexican government is well aware that the majority of remittances received are spent on basic cost of living expenses. IME and SRE are creating opportunities for Mexicans both at home and abroad to use their remittances for asset building. SEDESOL a Mexican agency that economic and social development has created a matched savings programs for Hometown Associations in the U.S. that collectively save money to sponsor infrastructure projects in their communities of origin. The Sociedad Hipotecaria Federal (Federal Mortgage Society) has developed a mortgage product for Mexicans living abroad to finance a home in Mexico. Micro-insurance products are also being developed so that all Mexicans can have access to a life insurance product.
While asset building is important, IME is focusing though on the basics, such as working with Mexican banks and Cajas Populares (Credit Unions) to facilitate an account to account remittance product called Directo a Mexico. Credits Unions in the U.S. have had tremendous success in offering low cost remittance products which are the first step in creating a relationship with new customers.
All participants agreed that transparency of products and services is very important when working with first time bank account users. It is through providing services and products that are easy to understand and that have no hidden cost and fees, that trust is then achieved. Once this trust is achieved, a long term relationship can be developed which benefits both the financial institutions and the customers.
I was pleased and thankful to be a part of this important Jornada. MAF will continue to work with the Mexican Consulate as well as the SRE and IME so that our Mexican clients can have access to these important program and services.