Microfinance has been widely discussed in the literature as a tool to increase financial inclusion for the poor. As a late comer in the microfinance world, Mexico is facing several policy dilemmas in the process of catching up with the rest of the world. They include: (i) setting up legislation which promotes the formal economy and protection for financial consumers; (ii) creating bank accounts for participants of cash-transfer social programs; (iii) dealing with innovative but disruptive business models of private actors; and (iv) making the market for mobile banking and digital money a tool that promotes financial inclusion. All of which is occurring within the context of recent anti money-laundering measurements across the financial sector. This case looks more specifically into the savings component of microfinance, identifying key actors, current trends, and policy actions. Can microsavings increase financial inclusion?
