Mexico is one of the fastest growing and most dynamic microfinance markets in Latin America. This sector is comprised of Microfinance Institutions (MFIs) that lend to individuals and micro to medium-sized companies with poor or no credit history. Although the market is still developing, it is becoming increasingly specialized; thus creating opportunities for venture capitalists, bankers, and technology solution providers with experience in the banking and financial service sectors. This report will provide an overview of the current Mexican microfinance sector and explore business opportunities for U.S exporters seeking to penetrate this expanding market.
For Mexican companies, access to credit is limited and costly. According to the Mexican Central Bank, in the first quarter of 2010 only 21% of Mexican companies received financing from banks, while more than 84% obtained it through suppliers. Moreover, 95% of the Mexican private sector is comprised of micro companies, most of which, have limited access to credit. For this reason, micro finance institutions and Popular Savings and Credit Institutions (PSCI) have proved to be an important tool for economic development and increasing productivity. In addition to financing low-income entrepreneurs that are not eligible for bank loans, these institutions have contributed to lowering transaction costs and increasing access to capital. Consequently, Mexico has one of the most dynamic microfinance markets in Latin America with 2.3 million clients.