Banks and Mexico’s president plan to eliminate cash

Banks and Mexico’s president plan to eliminate cash

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The Association of Banks of Mexico (ABM), represented by its president, Marcos Martinez, is committed to reduce the amount of cash used in the country, as well as increase the use of cell phone payments with QR codes.

In a press conference, along with Mexican President Andres Manuel Lopez Obrador, Bank of Mexico’s governor Alejandro Diaz de Leon, Treasury Secretary Carlos Urzua and Treasury Undersecretary Arturo Herrera, the bankers' leader mentioned the objectives of a new financial inclusion plan for the coming years.

"The plan has three main objectives: boost the country's economic growth, improve the condition of Mexicans and provide services with transparency," said Martinez Gavica during the presentation of actions to strengthen the financial system.

The objective is to add 30 million more people to the financial system, increase consumer credit by 50% and grant 1.3 million mortgages. It is also intended that financial services reach more remote communities, said the executive.

He added that the plan also provides financial assistance to 250,000 SMEs, and looks for people who benefit from social programs  not to pay for commissions; 20 of the major banks in Mexico are so far committed to the project.

Martinez Gavica explained that this new plan aims to combat corruption by eliminating intermediaries and streamlining the costs of social programs. He said the details of the program will be released next March during the Banking Convention.