Introduction to the Digital Transformation Initiative by Mexico’s SHCP
The Secretaría de Hacienda y Crédito Público (SHCP) emphasizes the importance of digital transformation in Mexico’s investment funds sector to modernize it and democratize access to financial products for the general population.
Key Figures and Their Roles
María del Carmen Bonilla, the head of the Public Credit Unit and International Affairs at Hacienda, has been instrumental in driving the digital agenda. Her efforts aim to achieve significant progress in financial inclusion.
Benefits of Digital Transformation
- Cost Reduction: By incorporating technology such as accessible digital platforms, mobile apps, and streamlined automated processes, operational costs are reduced.
- Expanded Reach: Digital tools enable financial services to reach traditionally underserved sectors of the population, fostering greater inclusion.
- Enhanced Competition: Digitalization simplifies the comparison of products, fees, and returns, promoting a more competitive investment funds sector.
Strengthening Financial Inclusion
María del Carmen Bonilla highlighted how investment funds assist individuals in achieving their wealth goals through access to diversified portfolios, allowing users to select products based on their profiles.
These instruments not only bolster the stability of the country’s public finances but also enable projects that directly impact economic growth, such as infrastructure, education, and health initiatives.
Areas for Improvement
Despite the progress, María del Carmen Bonilla acknowledged that there is still much work to be done in advancing financial inclusion in Mexico.
According to the National Survey of Financial Inclusion (ENIF), only 3.4% of the population uses fixed-term deposits or investment funds as a savings instrument.
However, the ENIF data also indicates that 63 out of every 100 Mexicans had a savings account by the end of last year, an increase of 18.9 percentage points compared to 2015.
The survey considers various factors, including salary accounts, pensions, government support accounts, internet or banking app-contracted accounts, fixed-term deposits, and investment funds.
Despite these advancements, a significant portion of the Mexican population remains financially vulnerable, facing issues such as financial instability, over-indebtedness, and limited capacity to seize economic opportunities.
Key Questions and Answers
- Q: What is the main focus of SHCP’s digital transformation initiative? A: Modernizing the investment funds sector and democratizing access to financial products for underserved populations.
- Q: Who is María del Carmen Bonilla and what role does she play? A: María del Carmen Bonilla is the head of the Public Credit Unit and International Affairs at Hacienda, driving SHCP’s digital agenda for financial inclusion.
- Q: How does digital transformation benefit the investment funds sector? A: It reduces costs, expands reach to underserved sectors, and enhances competition by simplifying product comparisons.
- Q: What are the current challenges in financial inclusion in Mexico? A: Despite progress, only a small percentage of the population uses investment funds for savings. Financial vulnerability remains an issue, with many facing instability, over-indebtedness, and limited economic opportunities.
