- Financial Inclusion for Women in Mexico: Adapting Financial Products to Their Specific Needs Allows Institutions to Capture an Underserved Market
- Economic Potential: This sector represents an income opportunity of $1.87 billion in Mexico for products specifically tailored for female entrepreneurs, savings, and insurance.
Financial inclusion for women represents a significant market opportunity in Mexico, where more than 50% of the population are women, yet many remain underserved by financial institutions. The recent guide from the World Bank and the Ministry of Finance and Public Credit, “Expanding Financial Inclusion for Women in Mexico,” presents a set of guidelines designed to help financial institutions integrate a gender perspective. This document addresses the need to tailor services and products to the specific needs of women, highlighting the potential to capture a diverse and growing market that benefits both society and financial performance.
An underserved market with great potential
In Mexico, the gaps in financial product ownership between men and women are considerable. According to the 2021 National Financial Inclusion Survey, only 44% of women have a bank account, while 34% own at least two financial products, compared to 49% of men. This segment, which includes female entrepreneurs, heads of households, and salaried workers, represents a potentially significant source of income. For instance, the Inter-American Development Bank (IDB) projects a revenue opportunity of $1.87 trillion in the Mexican financial sector derived from addressing this underserved market.
Women possess financial characteristics that make them a highly valuable audience: they show a greater propensity to save and have lower delinquency rates. Additionally, their influence on household purchasing decisions ranges between 70% and 80%, increasing their relevance in terms of consumption.
Thirty-five percent of households in Mexico are led by women, and 40% of small businesses are run by female entrepreneurs. These factors make it clear that greater financial inclusion for women is not only a social objective but also a competitive advantage for institutions looking to diversify and strengthen their client base.
Gender perspective in financial services
A common barrier to accessing financial services tailored for women is the perception that “neutral” products are sufficient to meet the needs of all customers.
However, this neutrality often overlooks gender specifics, as products tend to be designed from a male perspective, which can exclude the specific needs of women. Designing financial products that truly respond to women’s realities is not only a matter of equity but also results in a proven business advantage. Studies show that products adjusted to women’s needs generate additional benefits in other segments, enhancing the quality of financial institutions’ product portfolios.
The guide developed by the World Bank and the Ministry of Finance proposes a series of steps for financial institutions to integrate a gender perspective into their operations. This includes adjustments to products and services as well as internal changes in organizational structures. This approach involves recognizing the differences in financial experiences and behaviors between men and women, as well as the influence of social norms and potential gender biases in financial decisions.
Opportunities for the financial sector
Financial inclusion for women offers various specific opportunities that financial institutions can capitalize on:
- Customized products and services: By offering products tailored to the needs and circumstances of women, financial institutions can build customer loyalty. Women value relevant and personalized financial services, which increases their loyalty to institutions that adopt a gender-focused approach in their offerings.
- Financial services for entrepreneurs: Since 40% of small businesses in Mexico are led by women, there is a significant opportunity to develop credit and investment products tailored for female entrepreneurs. These products can range from microloans to financial advisory services and specific insurance, promoting economic growth and financial stability in this segment.
- Facilitation of financial decisions at home: Women in Mexico play a crucial role in managing their households’ finances. Providing them with appropriate and accessible tools can enhance customer retention and differentiate institutions that offer solutions for their daily needs.
- Increased customer satisfaction and retention: Personalizing financial services can boost client satisfaction, as women are more likely to remain loyal to institutions that understand and adapt to their needs. This approach not only allows for greater customer retention but also offers differentiation in the competitive financial market.
- Expansion of the insurance and savings market: The National Financial Inclusion Survey reveals that only 16% of women in Mexico have access to some form of insurance, and 29% have a retirement savings plan (Afore). Creating specific products in these segments is a direct opportunity to meet their needs and generate additional income.
Challenges and institutional support
Adopting a gender perspective in the Mexican financial sector requires a coordinated effort that must begin within each institution. For many entities, this change necessitates organizational restructuring that can benefit from technical support and resources promoting the development of inclusive policies. The guide “Expanding Financial Inclusion for Women in Mexico” mentions the possibility of implementing pilot programs that allow institutions to evaluate and adjust their products, supporting the creation of replicable success cases in the market. This not only facilitates the implementation of best practices but also contributes to normalizing the gender perspective in the financial sector.
Additionally, the Ministry of Finance has developed a Sustainable Taxonomy that includes gender equality as one of its objectives, featuring a Gender Equality Index focused on well-being and social inclusion. This initiative provides a foundation for financial institutions to assess and measure their progress in gender inclusion and sustainability, an increasingly relevant aspect for competitiveness in the market.
Financial inclusion for women in Mexico represents a strategic growth opportunity for the financial sector, not only in terms of profitability but also in social impact. Incorporating a gender perspective allows for improved service offerings and solidifies the loyalty of female clients, an expanding segment. Through an intentional focus on gender equity, the financial sector can not only capture an underserved market but also contribute to a more inclusive and equitable society.
