Integrating the Poor into the Mainstream Financial System: The BANSEFI and SAGARPA Programs in Mexico

This document presents the case study of National Savings and Financial Services Bank (BANSEFI) and Secretariat of Agriculture, Livestock, Rural Development, Fisheries, and Nutrition (SAGARPA) programs in Mexico.

The document analyzes:

• Background of both the programs;
• Their implementation processes;
• Scope of the initiatives;
• Impact of programs on institutions and clients.

• It further looks into the driving factors of BANSEFI and SAGARPA programs with respect to:
  • Commitment and Political Economy for Change;
  • Institutional Innovation;
  • Learning and Experimentation;
  • External Catalysts.
• The document concludes that:
  • Government intervention can effectively increase access to financial services for low income households and businesses by getting the regulatory framework right;
  • Packaging the development of adequate regulations and supervision, institution capacity building, and technological infrastructure is more likely to yield sustainable results;
  • Outreach expansion efforts among the poor in marginalized rural areas have much better long-term prospects if they focus on building the stake that these clients have in their savings and credit institutions as savers.