Introduction
The National Financial Inclusion Survey (ENIF) 2024 has unveiled that the rise in bank account ownership among older adults, driven by pension disbursements, does not guarantee genuine financial inclusion or substantial improvement in savings. This highlights ongoing challenges in achieving financial equity.
Background and Context
Jesús de la Fuente Rodríguez, President of the National Banking and Securities Commission (CNBV), emphasized that financial system participation is crucial for greater well-being and equal opportunities during the ENIF 2024 launch. Edgar Amador Zamora, Secretary of the Ministry of Finance and Public Credit (SHCP), defined financial inclusion as a pathway to improve well-being and reduce disparities.
Key Findings
The survey results indicate that the growth in financial product ownership among adults aged 64-70 was primarily due to bank account openings for receiving universal pensions. However, this form of banking has not led to functional financial inclusion.
Out of 24 financial products grouped into categories like formal savings, formal credit, insurance, and retirement accounts, the ENIF 2024 reports that 76.5% of Mexicans have at least one financial product, up from 68.3% in 2018. The older adult group saw the most significant growth, reaching 88.4% ownership.
However, excluding accounts opened solely for government support reduces the ownership rate from 88.4% to 57.6%, revealing a 30.8 percentage point gap. In 2018, a similar adjustment lowered the rate from 67.9% to 51.9%. Thus, without these accounts, the real increase in six years is only 5.7 percentage points.
Financial Participation Among Older Adults
Has the growth in government support accounts translated to greater financial participation among older adults? Analyzing the formal savings dimension, which includes government support accounts, provides insight. The ENIF 2024 shows that the proportion of people saving between 2021 and 2024 increased from 43.6% to 47.3% for the total population, but decreased from 31.2% to 28.9% in the 64-70 age group.
A possible explanation is that while universal pensions address immediate needs, they do not foster sufficient savings capacity for older adults to handle life’s challenges. Although promoted banking is a necessary step towards financial inclusion, it remains far from a definitive solution.
Unanswered Questions and Future Research
Key Questions and Answers
- Has the increase in government support accounts led to greater financial participation among older adults? The data suggests otherwise, as savings rates decreased in the 64-70 age group despite more bank accounts.
- What are the long-term benefits of financial inclusion for personal development? The empirical evidence supporting official claims about financial inclusion as a development driver is yet to be established, and will be addressed in an upcoming CEEY report on social mobility and financial inclusion.
Conclusion
The ENIF 2024 findings underscore the need to address gaps in financial equity, particularly among older adults. While banking access has increased, genuine financial inclusion and improved savings remain elusive. Further research is required to validate the long-term benefits of financial inclusion and ensure it effectively supports personal development.
