New ABM President Outlines Key Focus Areas for Mexican Banking Sector
Nuevo Vallarta, Nayarit. – Emilio Romano, the newly appointed president of the Asociación de Bancos de México (ABM), has outlined three primary focus areas for the Mexican banking sector. Taking over from Julio Carranza, Romano aims to reduce the excessive use of cash and accelerate digitalization, deepen access to financial products and services, and integrate the banking system with those of major trading partners.
Excessive Cash Usage as a Barrier to Financial Growth
During the closing of the 88th Bancaria Convention, Romano emphasized that excessive cash usage remains a significant obstacle to the growth of the financial system. This limitation hinders innovation, increases costs, promotes informality, facilitates illicit activities, and stifles mobility.
Benefits of Digitalization for the Financial Ecosystem
On the other hand, Romano highlighted that digitalization leads to numerous benefits for the entire financial chain. It simplifies transactions, reduces costs, decreases losses, and enhances information for better lending decisions.
- Measures to Encourage Digital Economy:
- Limiting the issuance of high-denomination banknotes
- Establishing simplified schemes for tax and security social compliance
- Digitalizing federal and local government transactions
- Incentivizing Digital Operations:
- Encouraging businesses and large corporations to adopt digital formats with their clients and suppliers
- Merging existing digital payment platforms to establish a single, unified system
Deepening Access to Banking Services
Another key focus area for the ABM under Romano’s leadership is deepening access to banking services, creating an easy-to-use, transparent ecosystem centered on people.
- Opening new spaces for financial system participants
- Expanding service offerings while ensuring their solidity through equal regulatory grounds
- Simplifying regulations for banks and their users to reduce associated costs with financial service expansion
Romano also stressed the importance of more micro, small, and medium enterprises (mipymes) gaining access to formal financing. He praised the recent agreement between the federal government and commercial banking to achieve this goal.
Promoting Integration with Major Trading Partners
Romano emphasized the need for collaboration between various banking systems as Mexico’s economic integration becomes increasingly necessary.
Supporting the Nation’s Major Projects
Romano expressed his readiness to support the nation’s significant projects and strategic development proposals, acknowledging that a modern, solid, and committed banking sector is essential to address the challenges of a constantly transforming world.
“From here, I assure you that we are ready to accompany Mexico in its great projects towards development,” Romano stated. “The question is not whether Mexico will become a developed economy, but how quickly we can achieve it. In the Asociación de Bancos de México, we are prepared to double down on our commitment to Mexico.”
