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What can financial societies expect this year?

The main challenge will be the linkage of the sector with the new government

The Multiple Purpose Financial Corporations (Sofomes) will grow between 20 and 40% during 2019. This is attributed to the development opportunities for sector entities promoted by the government.

Banking sector  is cautious

Fernando Padilla Ezeta, president of the Association of Multiple Purpose Financial Societies in Mexico (Asofom) said that the banking sector is cautious about the change of administration. However, the groups face a better outlook and see more growth.

The advantage of these is that they mainly serve the population forgotten by the traditional financial sector.

He also highlighted some of the measures that generated optimism. For example: the government’s decision to support small and medium-sized enterprises (SMEs) and the consolidation of the Financial Technology Law (Fintech).

How is financing going to work now

He recalled that Sofomes receive financing mainly from private equity funds or securitizations.

Regarding the momentum programs, he highlighted the flexibilization measures that will be given to the Retirement Fund Administrators (Afores).

“We believe that this initiative will generate more liquidity and help impact us,” he said.

He considered that the main challenge at the head of the Asofom will be the connection with the new government. Especially because of the personnel changes that took place in the different dependencies.

Published inFintech

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