Download Diapositiva 1 - Rural Finance and Investment Learning Centre

Enabling Policies for the Development of Integrated
Financial Services in Mexico’s Marginal Rural Areas:
Lessons from the Rural Microfinance Technical
Assistance Project (PATMIR)
Gabriela Zapata Álvarez
INTERNATIONAL CONFERENCE ON RURAL FINANCE RESEARCH
Rome, 20 March 2006
SUBSECRETARÍA DE DESARROLLO RURAL
Dirección General de Programas Regionales y Organización Rural
Dirección de Fomento de Organizaciones Financieras
BANKING THE RURAL POOR
 RURAL MUNICIPALITIES WITH VERY HIGH, HIGH AND MEDIUM MARGINALITY
LEVELS* with at least 70% of new users living in communities of
≤10,000 inhabitants
 DIVERSIFIED POPULATION: women, men, adolescents, childen, artisans,
farmers, housewives, teachers, migrant workers, entrepreneurs, etc.
 MULTIPLE FINANCIAL SERVICES that are savings-based and demanddriven: savings accounts, investment, credit, remittances,
insurance, check-cashing, utility payments, distribution & recovery
of government subsidies, etc.
*INEGI: Instituto Nacional de Estadística, Geografía e Informática
Comprises 3 strategic elements:
1. New Regulatory Framework: Popular Savings & Credit Act (PSCA)
2. BANSEFI becomes a Development Bank with 3 mandates:
 Promote a savings culture (emphasizing lower-income populations)
 Become the Sector’s Central Bank
 Coordinate the Federal Government’s tempiorary support package to the Sector
3. Federal Government’s temporary support package to strengthen the institutional
capacity of the Sector:
 L@ Red de la Gente
 Technical Assistance
 Studies, monitoring & Impact Evaluation
 Training
 Promotional Campaign
 Tecnological Platform
 Training of Supervision Committees
PSCS = Popular Savings & Credit Sector
–Provide security to savers participating in the PSCS
Objetives:
–Order, develop & consolidate popular financial institutions
April 2001
2001-2005
Jan. 2006
PSCA Approval
Transition
• Authorization
• “Conditioned Extension”- Dec 2008
PSCS adjusts
operations,
organization and
indicators to comply
with regulation
Conduct General
Assembly, obtain
B+,B, C grade, Work
Plan
FEDERAL GOVERNMENT SUPPORT PACKAGE
TO PROMOTE FORMALIZATION
MRA=Marginal Rural Areas
Promote access to formal
financial services that are
savings-based, demand-driven
and sustainable in marginal
rural areas through the
provision of specialized TA
INTEGRATED REGIONAL
STRATEGY
LED BY SPECIALIZED TECHNICAL
ASSISTANCE PROVIDERS
FI SELECTION CRITERIA:
SPECIALIZED
TA PROVIDER
 Willingness & capability to comply
with the law
 Willingness & capability to expand
services to marginal rural areas
CONTRACT:
Work Plan
 Willingness to work with specialized
agency according to Contract &
Work Plan

CSG


Field
Promoters
Mobile
Services
FI: Financial Intermediary
CSG: Credit & Savings Group
FI
T
A
FI
Branches

CSG

Service
Point
TA
Provision of specialized
technical assistance & training
to FI’S by highly-qualified
Consultant Firms selected
through an international
tendering process for a period
of 3-5 years
COST COMPENSATION
FOR EXPANSION
Provision of targeted &
declining subsidies for branch
expansion and operation for a
period of up to 3 years per
branch
TA
COST-COMPENSATION
FOR EXPANSION
7 Regional Projects = 10 States
• Chiapas-Tabasco
• Huastecas
• Puebla-Tlaxcala
Huasteca
Michoacán
• Guerrero
• Oaxaca
Puebla y
Tlaxcala
Veracruz
Guerrero
Oaxaca
• Veracruz
• Michoacán
Chiapas y
Tabasco
F
E
E
D
B
A
C
K
 STUDIES
 PANEL SURVEY
Use of financial services, household expenditures and
assets, economic activities of the household, receipt of
remittances, and economic shocks faced by the household.
 BANSEFI & SAGARPA
 5 years (2004-2008)
 5,800 households
 1,492 reside in communities served by PATMIR FIs
 2/3 of sample are rural & 1/3 is urban
 Treatment: ½ “banked” – Matched: ½ “unbanked”
 Analysis so far: Base-line (2004), comparing clients of
PSCS as a whole vs PATMIR FI clients
PATMIR
PSCS
PATMIR
PSCS
(All)
(All)
(Rural)
(Rural)
5.2 yrs
6.3 yrs
4.6 yrs
5.3 yrs
Monthly
income
(median)
mp$2,520
mp$3,780
mp$2,400
mp$2,520
Monthly
expenditures
(median)
mp$1,970
mp$3,199
mp$1,770
mp$2,350
Durables: mp$3,000
House size: 3 rms
Piped water: 24%
Durables mp$4,800
House size: 3.5 rms
Piped water: 62%
House size: 2.9 rms
Piped water: 39%
House size: 3.1 rms
Piped water:39%
Education
Level of
Female Head
Assets
PSCS = Popular Savings & Credit Sector
 PATMIR is attracting clients with lower income and wealth levels in
both rural and urban areas
 Banked and unbanked populations have very similar
characteristics in rural areas
 61% opened their account after PATMIR
 Remittances are important:
 Receivers – Median acc. balance: mp$4,350
 Non-receivers – Median acc. balance: mp$1,200
 Loans to PATMIR clients: 2/3 of rural clients & 38% of urban
 Neither home nor land ownership is significantly associated with
having a loan.
 Level of education is not a factor for obtaining a loan in the
PATMIR sample
Selective
Multi-annual
Innovative
STANDARDIZED
FRAME OF
REFERENCE
(LACP-GAE)
Intensive
On-site
Compensatory
TA
Results
Oriented
 Marginal rural population constitutes a viable market.
 Providing financial services in marginal rural areas does not
impede compliance with regulatory requirements.
 Synergies among all actors are important to ensure win-win
scenarios.
 Creation of FIs more expensive than Expansion, but
adequate in some cases.
 Operational sustainability can be achieved by new FIs in 3-5
years.
 Obstacles to providing services to the rural poor can be
overcome through adaptation and innovation.
 Various models and approaches can be used to reach the
rural poor successfully.
GABRIELA ZAPATA ÁLVAREZ
Director of Promotion of Financial Organizations
SAGARPA – MÉXICO
Email: [email protected]