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Why 2019 will be a positive year for the growth of the Financial Societies

The sector of the multipurpose financial corporations (Sofomes) will grow between 20 and 40 percent during 2019, because the change of government opens up new development opportunities for these financial entities.

The views of the banking sector

The new president of the Association of Multiple Purpose Financial Societies in Mexico (Asofom), Fernando Padilla Ezeta, told Notimex that while the banking sector is cautious about the change in administration, sofomes -focused mainly on the population not served by the traditional financial sector- see greater growth.

Prior to the protest that will take place on Tuesday, he stressed that the measures that generate optimism for the sector are: the government’s decision to support the small and medium-sized enterprises (SMEs), the consolidation of the Law on Financial Technology (Fintech), as well as measures to boost the financial sector.

The percentage of growth they are looking forward to

“We are estimating this year in the Sofomes sector to achieve growth of between 20 and 40 percent,” although this will depend on the development of the measures announced.

The national president of Asofom stressed that the Sofomes are the main vehicle to reach SMEs, while on the Fintech side, there are many sector entities that adopt new processes and technological tools to reach the customer.

Why things are getting easier

Regarding the program to boost the financial sector, he highlighted the flexibilization measures that will be given to the Retirement Fund Administrators (Afores), as well as making the placements in the securities market easier.

“That opens up opportunities for liquidity in the market, which means that financial intermediaries are going to have more simple momentum or more securitizations, it’s a good opportunity for financial intermediaries because there will be more lines, availability of resources to finance more customers, “he said.

The Sofomes, he recalled, receive financing from private equity funds or securitizations as one of the main channels, so “we believe that this initiative will generate more liquidity, help to impact us.”

Financial inclusion

On the other hand, Padilla Ezeta considered that the main challenge at the head of the Asofom will be the connection with the new government, before the personnel changes that there were in the different dependencies, with the purpose of collaborating and supporting the financial inclusion.

“We have already been talking to them, we have all the willingness to collaborate, to add, looking for how we achieve a better inclusion in the different sectors and products, then we bring a challenge and a strategy to collaborate. Asofom’s position with the authorities will always be proposals, working with them very closely, always proposing improvements that impact the final customer, “he said.

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