The banks and AMLO want you to use less cash and use your cell phone instead.

The Association of Banks of Mexico (ABM) will seek to reduce the amount of cash handled in the country, as well as increase the use of payments through QR codes.

MEXICO CITY – Less use of cash and more cell phone use in payments: these are two of the key objectives announced on Tuesday by banks in Mexico to fight corruption and promote financial inclusion in the following years.

The Association of Banks of Mexico (ABM), in the voice of its president, Marcos Martínez, committed to reduce the amount of cash handled in the country, as well as increase the use of payments through cell phones with QR codes .

At a press conference, along with the president of Mexico, Andrés Manuel López Obrador, the governor of the Bank of Mexico, Alejandro Díaz de León, the finance secretary, Carlos Urzúa, and the undersecretary of Finance, Arturo Herrera, the leader of the Bankers mentioned the objectives of a new financial inclusion plan for the following years.

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

To do this, it seeks to add 30 million more people to the financial system, increase consumer credit by 50%, and grant 1.3 million mortgages. In addition, it is intended that financial services reach more remote communities, detailed the manager.

He added that the plan also includes financial attention to 250,000 SMEs, that people who benefit from social programs are not charged commissions and that 20 of the main banks in Mexico are committed to the project so far.

Martínez Gavica explained that the lower use of cash aims to combat corruption by eliminating intermediaries and making the costs of social programs more efficient. He said that the details of the program will be announced in March during the Banking Convention.

“We are going to develop a digital banking system so that financial systems reach the most distant places in Mexico and we are going to change the way in which a credit is accessed,” said Undersecretary of Finance Arturo Herrera.

To achieve this, the ABM has allocated 80 billion pesos for the development of technology, branch modernization and development of financial services.

The new plan will also include young people. “Mexican people between 15 and 17 years old will be able to open a bank account in their name and without guardians,” said Herrera.

During his participation, López Obrador reiterated his respect for the autonomy of the Bank of Mexico and its commitment to maintaining a balanced economy: “We are not going to spend more than we have on revenues (…) We will not continue to indebt the country”.

Source: Expansion

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