Abstract (EN)

Prior to 2001, almost all microfinance institutions (MFIs) which offer credit and savings services to the poor in Mexico were part of the informal economy. As the government committed itself to formalizing them in order to secure people’s savings, it faced major operational and political obstacles. Ten years later, new legislation allowed private actors to generate business models targeting the poor and expanding financial inclusion, but which also set up a fierce competition to profit from the “base of the pyramid”. This brief discusses the policy dilemmas involved in the process of expanding financial inclusion in Mexico. Further, it focuses on the lessons learned which can be applied to developing countries with an innovative private sector in the process of implementing digital and mobile technologies in the financial sector.