As some of Mexico’s alternative credit providers have fallen from grace, others have emerged and lessons have been learned by new and existing players in the non-bank financial sector, creating opportunities for growth in multiple segments.
Green finance in the private sector was predominantly linked to corporate responsibility. It’s now the time to integrate climate action into the core business of financial institutions.
Access to digital transactions leads to the financial inclusion of the unbanked, underbanked and vulnerable populations, while boosting the resilience and growth of micro, small and medium-sized businesses.
Thematic bonds—and transparently measuring and reporting their impact—are a powerful tool for mobilizing resources and deepening financial inclusion for microenterprises within the most vulnerable groups of society who have yet to be served by the financial sector.
The ecosystem growing around sustainable funds offers a source of financing for companies in the region, which may help international and local investors to develop their own sustainability agenda with transactions classified as impact investments in their portfolios.
Financial institutions have a critical role to play in the process of decarbonizing economies. Without their help, it will be impossible to finance the estimated $1.5 trillion (equivalent to 5% of the global GDP) needed to transition towards a green economy.