FINANCIAL SERVICES IN

3 1 3 67,902 6,911 institutions of credit 4,104 7.5% finance, institutions with $45,239 4.7% intermediation and services insurance exchange and national non- and pension MUSD* GDP sector financial investment GDP financial banking 1 companies GDP activities 3

1

Mexico has an autonomous central bank (Banco de México) responsible for monetary policy, inflation, printing of currency, accumulation of international reserves and monitoring of the Mexican financial system.5 478,776 jobs 2 23,461 graduates of careers related to: 2 There are two stock centers operating in Mexico: Mexican Stock Exchange (Bolsa Mexicana de Valores - BMV) with 148 listed companies is the main financial center - Administration and Institutional Stock Exchange (Bolsa Institucional de Valores - BIVA) with of the country, thus concentrating 66% - Banking 52. BMV is the second largest stock Exchange in . 6 of total jobs in this sector. 2 - Accounting - Finance

With the 2013 financial reform,total assets reported by financial institutions increased 29% by 2017. Likewise, loans increased 38%, which means a greater market penetration of credit in the country’s economy. 7

EXPORTS 8 FOREIGN DIRECT INVESTMENT 9 MUSD Bail, insurance and CUMULATIVE FDI $3,681 Stock exchange pension companies and financial 2014 $12,699 investment activities 2013-2017 $3,309 8% MUSD 2015 7% $3,034 2016 $2,597 $3,649 MUSD 2017 2017 Non-market credit and 85% financial intermediation Mexico is the largest exporter of institutions financial services in Latin America.

FINANCIAL TECHNOLOGIES Financial Others In 2017, the number of Fintech education increased in segments such as: 10 and savings - Insurance: 114% In 2018, Mexico began to implement a Loans 10% - finance management: 75% Fintech Law, which: 5% 23% - Payments and remittances: 59% - Promotes and regulates innovation and the Insurance - Financial education and savings: 57% use of technologies in financial services. 6% - Personal finance management: 53% - Enables one of the first regulatory sand- 238 boxes in the world for the development and Crowdfunding 9% Fintech testing of new financial products (the others businesses 9 are United Kingdom and Singapore). The most used 22% cryptocurrency in Mexico - Could bring more than 260 MUSD in reve- Personal 10% Payments and 10 is , with a circula- nue for individuals and companies a year. finance remittances Bitcoin management 15% tion of 17,155,187 units. This represents a capitalization of Business finance 127 billion usd*. 11 Mexico is the Fintech leader of Latin America, management hosting 34% of the businesses operating in the region. 10

In the next 10 years, Fintech companies will have Some Mexican startups are developing products with blockchain technology for business 12 more than 30% of the Mexican banking market. 10 applications, electronic identity verification and the elaboration of smart contracts.

Notes: *Estimation using 2017 average exchange rate. Sources: 1. DENUE, july 2018. / 2. Economic Census, 2014. / 3. INEGI, 2017. / 4. ANUIES, 2016-2017. / 5. Banxico, 2017. / 6. ProMéxico with information from the Mexican Stock Exchange and other public sources, july 2018. / 7. KPMG, 2017. / 8. World Bank, 2017. / 9. Secretaría de Economía , 2017. / 10. Fintech Radar México, 2017. / 11. Bitso, july 2018. / 12. “Tecnología de blockchain en un mundo digital”, ProMéxico, 2018.