Introduction of Emilio Romano as ABM President
Emilio Romano, the newly appointed president of the Asociación de Bancos de México (ABM), announced that one of his main objectives is to reduce cash usage and accelerate the digitalization of Mexico’s economy. He emphasized that a collaborative effort with the government, Banco de México (Banxico), and the private sector is essential to implement concrete actions that will speed up the digital transformation of the financial system.
Proposed Measures
- Limiting the issuance of high-denomination banknotes
- Simplifying tax and security compliance procedures for digital transactions
- Digitizing government (federal and local) transactions, ensuring that all social support chains are paid and used digitally for the benefit of recipients
Incentivizing Digital Operations for Businesses and Large Enterprises
Romano also highlighted the importance of encouraging small and medium-sized businesses, as well as large enterprises, to operate digitally with their supply chains and merge existing digital payment platforms into a single, well-promoted platform. This would enable universal mobile digital payments without contact, for any amount at the lowest cost.
Benefits of Reducing Cash Usage
Romano explained that reducing cash usage would foster growth in the financial system by promoting innovation, lowering costs, decreasing informality, curbing illicit activities, and enhancing social mobility. He emphasized that increased digital payment usage would contribute to greater financial inclusion and reduce inequalities, ultimately boosting social mobility.
Current Cash Usage in Mexico
According to the National Financial Inclusion Survey 2024, cash remains predominant in Mexico. For instance, 74% of the population still uses cash for purchases exceeding 500 pesos.
Profound Access to Banking Services
Another key focus for Romano’s tenure is to deepen access to banking services, thereby elevating financial inclusion. He aims to create a user-friendly, transparent, and people-centered financial ecosystem by welcoming new participants into the system and ensuring their stability through a level playing field and avoiding regulatory arbitrage.
Simplifying Regulations
Romano proposed working with authorities to streamline regulations for banks and their users, reducing costs associated with expanding financial services.
Strengthening Mexican Bank Coordination with North American Partners
Romano, who is also the General Director of Bank of America Merrill Lynch México, pointed out that while the T-MEC has made significant progress in integrating value chains in industry and logistics, financial services integration lags behind. He sees this as an opportunity that could bring substantial benefits in terms of response times and costs.
