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Determinants of and barriers to people’s financial inclusion in Mexico

Author

Listed:
  • Steven Cassimon
  • Alessandro Maravalle
  • Alberto González Pandiella
  • Lou Turroques

Abstract

Individuals’ access to finance is particularly low in Mexico. Widening access to finance would boost growth and inclusion. This paper uses microdata from the National Survey for Financial Inclusion to assess the drivers of and the barriers to people’s financial inclusion in Mexico. Results show that working in the formal sector, the level of wealth and income, educational attainment, and age are the socio-economic characteristics that most affect the likelihood of holding any formal financial product. The relative importance of these characteristics, however, varies across financial products. Economic barriers to individuals’ financial inclusion are strongly associated with widespread informality and a low level of education and income. These results suggest that financial education programmes and credit registries considering a wider set of data to assess informal workers' credit worthiness would be promising avenues to help more Mexicans access financial services.

Suggested Citation

  • Steven Cassimon & Alessandro Maravalle & Alberto González Pandiella & Lou Turroques, 2022. "Determinants of and barriers to people’s financial inclusion in Mexico," OECD Economics Department Working Papers 1728, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1728-en
    DOI: 10.1787/73e9341b-en
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    More about this item

    Keywords

    banks; credit registry; financial education; financial inclusion; informality;
    All these keywords.

    JEL classification:

    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • G2 - Financial Economics - - Financial Institutions and Services
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • G52 - Financial Economics - - Household Finance - - - Insurance
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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