Background on the Change and Its Relevance
Currently, workers can only obtain payroll-backed loans from the bank where they hold their salary-receiving account. However, starting August 29, 2025, the Banco de México (Banxico) will allow workers to apply for these loans at any bank of their choice, while the deductions will still be made from the original account.
Who is Banco de México (Banxico)?
Banco de México is the central bank of Mexico, responsible for implementing monetary policy and ensuring financial stability in the country. Its recent decision to expand credit options for workers demonstrates its commitment to fostering a more competitive and accessible financial environment.
Key Changes in Payroll-Backed Loan Regulations
- New Credit Modality: Banxico introduced a new regulatory framework allowing workers’ salaries and benefits, deposited in their payroll accounts, to serve as payment sources for any credit contracted with financial institutions.
- Expanded Financing Options: This change enables any bank to offer payroll-linked credit, increasing the variety of financing choices available to workers.
- Increased Competition: The new rules encourage competition among financial institutions, potentially leading to better credit terms for workers as they can freely choose the most suitable lender.
- Additional Credit Modality: These amendments establish an extra credit option alongside existing ones, giving workers more flexibility in managing their finances.
What are Payroll-Backed Loans?
Payroll-backed loans, according to Banxico, are credits extended to workers whose salaries are deposited into a nomina account at a financial institution.
- Traditional Offering: Historically, these loans have been provided by the same bank offering payroll disbursement services for companies and nomina accounts for workers.
- Direct Deduction: Unlike other consumer credit types, payroll-backed loans have the bank directly deducting payments from the worker’s nomina account, eliminating the need for intermediary processes.
- Market Significance: Payroll-backed loans currently account for approximately 25% of total consumer credit issued by banks in Mexico. As of May’s end, the payroll-backed loan portfolio stood at 402 billion pesos.
Key Questions and Answers
- What is changing? Workers will now have the freedom to choose any bank for payroll-backed loans, while deductions will continue from their original nomina account.
- Why is this change important? The new regulations aim to create a more competitive financial landscape, offering workers better credit terms and increased financing options.
- When will these changes take effect? The new rules will be implemented on August 29, 2025.
- What are payroll-backed loans? These are credits given to workers with salaries deposited in nomina accounts, where payments are directly deducted from the account.
- How significant are payroll-backed loans in the Mexican banking sector? They represent around 25% of total consumer credit issued by banks in Mexico, with a portfolio value exceeding 402 billion pesos as of May.
