Financial inclusion is a very important issue at the national and international level, both for governments and financial institutions. In recent years, this problem has been increasing in our country, which means that more and more Mexicans have access to formal financial services to achieve their goals.
In the future, we can expect that financial inclusion in Mexico will be even greater with the rapid emergence of banking products that can be contracted 100% remotely (deposit and credit accounts), which will allow us to reach the entire Mexican population with an Internet connection. , without having to go to a bank branch or office.
However, as the United Nations Capital Development Fund (UNCDF) points out, financial inclusion should not be reduced to access and contracts for banking products and services, but should also consider the reasons why people access and use those products and services and what their impact is. its uses exist in the real world. It is these results that indicate the success or limitations of inclusion.
This is where the four aspects of financial health come into play: security, resilience, control, and freedom. These four things enable a person to meet current needs, absorb financial shocks, and achieve economic goals.
In general, financial security implies the ability to meet short-term commitments (not having to worry about daily life); financial resilience, the ability to respond to and recover from unexpected events (the main factor of concern is medical costs); financial control, the ability to feel that you are in control of your own finances (this is a subjective factor that begins with how a person considers his or her level of vulnerability); and financial freedom is the ability to meet long-term goals (primarily focused on saving for retirement).
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Inclusion and financial health
The government recognizes the need to complement financial inclusion measures with a focus on financial health, with the aim of building a more prosperous and resilient society. Examples are the “First National Financial Wellness Survey” sponsored by Condusef and due to be ready in the summer of 2024 and the UK financial well-being strategy launched in 2020 and aimed to be achieved in 10 years: (Yo) that more than 2 million children and young people have access to quality financial education, (ii) that more than 2 million people save regularly, (I, I, I) that more than 2 million people stopped using credit to pay for food and household services, and (iv) that more than 5 million people understand the importance of saving for retirement.
Likewise, financial institutions have begun to align their business strategies with the financial health of their users, considering: (Yo) When users are financially healthy, they become better customers, i.e. they save more, pay on time and buy new products, and (ii) When financial products are focused on the needs of clients (simple products that facilitate the storage and control of their money), not just on the needs of institutions, they enable institutions to meet their financial goals, which translates into an engine of societal growth. sector.
In conclusion, the power of financial wellness lies in its ability to create more prosperous and confident individuals, which means a stronger, less complex financial system, and ultimately, a richer, more resilient society.
* Luis Cárdenas is executive director of Regulatory Control and AJ Banco Sabadell
The opinions expressed are solely the responsibility of the author and are completely independent of editorial position and line Forbes Mexico.
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