I thought I'd share a well written article on one of the recent changes in Mexican microfinance I've been learning about. A law passed in late 2010 permitted the expansion of what are called Corresponsales, or 'correspondance banking.' The idea is that registered banks are now able to create agreements with non-financial entities, such as convenience stores and grocery stores, to conduct financial transactions in these stores. The change is going to drastically change the financial sector in the next ten years, and we are already seeing a rapid race to link once expensive and complex financial services to everyday activities. Soon, you will likely be able to make a deposit into your bank account from any convenience store in Mexico, open a bank account in Wal-Mart (already possible through their new Wal-mart Bank), and pay all sorts of bills through stores.
So, if you're interested in the trend towards branchless or mobile banking in the developing world, or want to read a concise summary of some of the issues I'm looking at in Mexico, check out this article:
Mexico: Promising moves towards new banking models
"However, most of these strategies are still about reducing the cost to serve existing customers and much less about growing towards new lower income segments...In all, 35% of the economically active population completely lacks any form of formal financial services, 57% of the municipalities have no banking access, and only 25% of the Mexican population has a savings account."
