Financial exclusion remains one of Mexico’s biggest barriers to economic growth.
Mexico has a population of over 130 million, yet credit to SMEs represents less than 7% of GDP, compared to over 25–30% in countries like Brazil and Chile. This gap keeps millions of entrepreneurs reliant on cash and left out of the formal banking system.
The country boasts over 80 million potential banking customers, but a third of Mexicans are unbanked, and most SMEs can’t access financing products. For entrepreneurs and shop owners – the backbone of the economy – this means limited access to credit, restricted
opportunities to expand, and a persistent struggle to thrive in a modern economy. Yet change is within reach, as President Sheinbaum promises to improve access to credit for individuals and SMEs.
A powerful combination of technology, shifting policy priorities, and sheer market demand has created the conditions for Mexico to move into a new era of financial inclusion. With Latin America emerging as a fintech hotspot, Mexico stands out as one of the
region’s most promising markets for digital banking, which could result in meaningful improvements to financial inclusion and economic growth.
Could mobile phones be the answer?
Bank accounts may be scarce in Mexico, but almost everybody has a mobile phone. This creates the perfect launchpad for digital-first financial services to reach people who have long been excluded from the traditional banking system.
Currently, most digital financial services in Mexico are provided by non-Mexican financial services firms, and the big banks in Mexico are largely subsidiaries of global giants. Brazilian-founded Nubank and UK-based Revolut have announced their intentions
to provide services in Mexico, spotting the obvious opportunity in a massive addressable market. Mexico needs more than another foreign firm chasing market share, it needs a homegrown neobank that understands how Mexicans live, earn and spend.
To drive real change in Mexico, the solution must combine local knowledge with digital tools — using data from electronic invoicing, mobile payments, and tax records to design responsible credit models that truly reflect how Mexicans live, earn, and spend.
Crucially, it should prioritise the five million SMEs that make up 95% of businesses in Mexico. These firms not only operate largely in cash, but also account for the majority of new jobs in the country — every peso invested in them generates up to 2.5 times
more employment than consumer credit.
Responsible financing for SMEs
Traditional banks have long underserved SMEs. As a result, credit is scarce, and growth opportunities are limited. President Sheinbaum has already recognised this gap, making SME financing a pillar of her economic agenda. The alignment between political
priorities and market demand creates a rare chance for a neobank to step in with a digitally-enabled solution that recognises the contribution these businesses make to both the economy and society.
Prioritizing SME lending over the easier, but often less impactful, route of consumer credit could be transformative. Funding a small shop’s new inventory, helping a tortilla stand to buy a delivery scooter, or enabling a local farmer to modernize operations:
all these investments have tangible social and economic returns.
What’s more, this approach will drive success for whoever gets it right. Channelling deposits into productive SME loans, rather than short-term consumer credit to finance a new flat-screen TV, will lower loan defaults, drive a healthy deposit franchise and
help to turbocharge the Mexican economy.
Mexico as a success story
The next chapter of Mexico’s growth story won’t be written by foreign entrants chasing user numbers, but by a homegrown financial institution that understands the local realities and puts SMEs at the heart of its mission.
Done right, a Mexican neobank could do more than bridge gaps in access; it could reshape how financial services fuel entrepreneurship, jobs, and long-term prosperity. Mexico doesn’t need another foreign neobank; it needs its own. The question is who will
seize the opportunity first.
