Year: 2025

Mitrade’s sustainable growth strategy

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The rise of retail trading during the Covid-19 pandemic brought more individual traders into the Contract for Difference (CFD) market. This has led to a boom in CFD broker growth and a rapid evolution of the CFD brokerage industry characterised by increased competition, regulatory tightening and the growing sophistication of traders who expect more advanced tools and platforms. As one of the fastest growing brokers in recent years, Mitrade recognised these industry and consumer shifts and has developed a proprietary platform that is both intuitive and comprehensive, with a diverse product offering that appeals to beginners and experienced traders alike. With a steadfast commitment to sustainable business development, Mitrade has been awarded the Most Sustainable FX Platform (Global) in 2024 by World Finance.

Building sustainable relationships
The regulatory landscape for CFD brokers has evolved significantly in recent years, with a key focus of protecting retail investors from high-risk exposure. Australia, Europe and parts of Asia have introduced leverage caps and imposed stricter regulations on how brokers can advertise and market their services, particularly regarding high-risk promises or bonus schemes. Additionally, enhanced Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance has made client onboarding more complex and costly.

These increasing regulatory requirements along with rising operational costs are reducing profitability, but by maintaining full compliance with global regulatory standards, CFD brokers can minimise legal risks, sustain operations and increase their trustworthiness with clients. Additionally, regulatory tightening has pushed brokers to innovate and find alternative revenue streams, build sustainable, long-term relationships with clients, and use automation and technology to streamline processes and improve the overall client experience, which are also key to achieving growth.

Mitrade operates across the globe with entities regulated by the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), the Cayman Islands Monetary Authority (CIMA) and the Financial Services Commission (FSC) from Mauritius. Mitrade’s philosophy is to provide a transparent, simple and regulated trading environment for users through their user-friendly proprietary platform.

Mitrade offers clients advanced risk management features, which help to protect both the client and the broker, fostering trust and reducing regulatory risks to create a secure trading environment for clients.

Strengthening user trust
As traders have diverse preferences for asset classes, offering a wide range of tradeable instruments – such as stocks, commodities, forex, indices and cryptocurrencies – broadens market reach and attracts a more varied client base. When market conditions in one asset class are less favourable, brokers can shift focus to more active markets to maintain stable revenue.

Brokers must be ready to embrace change and technological advancements like AI, data analytics, and automation

Traders are also more likely to remain loyal to a platform where they can access multiple assets in one place, providing them opportunities to diversify their portfolios across different markets. Introducing special features like premium accounts, subscription models, or specialised tools for advanced traders can help reduce dependency on trading volumes alone. By remaining aware of market trends and catering to the evolving needs of traders, such as by offering emerging asset classes like cryptocurrency and ESG-related instruments, brokers can increase trading activity, revenue and client engagement, while reducing churn rates and fostering loyalty.

Mitrade is a multi-asset broker offering a diverse portfolio of financial instruments covering a wide selection of CFDs in forex, commodities, indices, shares, ETFs and cryptocurrencies.

With the rise of mobile trading, convenience and accessibility have become paramount. Traders are increasingly favouring mobile platforms and expect the same advanced tools, real-time data, and functionality as desktop versions provide. Brokers must deliver fully optimised mobile apps without sacrificing capability, thereby ensuring traders can execute strategies seamlessly on the go. Mitrade offers an intuitive, secure and user-friendly platform across web, desktop and mobile apps. With a simple and accessible interface, real-time market updates, trading analysis and risk management tools, the platform easily meets the needs of all different types of traders.

Putting customers first
With increasing competition in the broker market, maintaining differentiation and fostering customer loyalty can be challenging, especially as today’s traders are more informed and expect better platforms and top-tier customer service. Building sustainable client relationships must therefore begin even before clients sign up.

Through targeted digital and localised marketing strategies, brokers can tailor campaigns that attract specific trader demographics and expand into new markets. Providing educational resources such as trading tutorials, webinars and market analysis, helps not only attract new traders, but also fosters trust and credibility, positioning the broker as an industry expert.

Mitrade understands that client education is critical for long-term retention and growth. When clients feel empowered, they are more likely to stay engaged and make better-informed trading decisions. Therefore, we provide our customers with comprehensive education resources to enhance confidence and increase trading activity. By reducing the frequency of impulsive, high-risk decisions, education also helps protect clients from large losses. Mitrade is dedicated to delivering quality customer service, offering 24/5 support aligned with global trading hours, provided by a team of dedicated customer service officers. In addition to live chat bots and a detailed FAQ, clients can seek support through email and inquiry forms. Robust customer support combined with continuous education in risk management, market analysis, and trading strategies helps reduce client churn and improves profitability.

Mitrade’s commitment to high-quality products and services has earned it multiple customer satisfaction and happiness awards, reflecting our clients’ trust and loyalty.

Technology at the heart
For companies like Mitrade, technology is at the heart of our ability to scale and grow, and ensures our competitiveness in a rapidly evolving market. Our user-friendly, mobile-first platform offers real-time market access, analytics, and a reliable trading experience that supports active trader retention. Fast trade execution and low latency are critical in time-sensitive markets, and our advanced risk management tools – such as stop losses and negative balance protection – help limit excessive losses for clients and reduce exposure to negative balances, ensuring regulatory compliance.

Mitrade’s philosophy is to provide a transparent, simple and regulated trading environment for users

Leveraging technology has allowed us to expand into new markets, automate account management, streamline client onboarding, and monitor compliance, effectively scaling operations without proportional cost increases. The widespread adoption of artificial intelligence (AI), big data analytics, and algorithmic trading over the last few years are driving growth. AI chatbots are helping improve customer support, while personalising trading experiences through tailored market insights and analytics, helping our clients make more confident decisions. Analysing large data sets also helps brokers, like Mitrade, understand customer behaviours and market trends, leading to optimised product offerings, reduced churn, and improved marketing strategies. Furthermore, real-time market monitoring supports better customer trading insights, reducing the risk of non-compliance with improved transaction monitoring.

Technology plays a pivotal role in Mitrade’s sustainable growth, competitiveness and market differentiation. AI personalisation, such as personalised dashboards and automated insights, will be key to providing a tailored and engaging experience for traders. As demand continues to grow for strategies involving learning alongside experienced traders, such as social and copy trading, what remains essential is advanced data and analytics tools that help retain both novice and seasoned traders. We see that future growth will be driven by access to expanding markets, such as cryptocurrency CFDs and other digital assets, and introducing advanced mobile features such as biometric security, one-click trading and push notifications.

Future outlook
Unlocking sustainable growth over the next decade will continue to be a challenge with evolving regulations and client expectations. Brokers must be ready to embrace change and technological advancements like AI, data analytics, and automation to provide personalised insights, predictive analytics and automated risk management. Expanding CFD offerings to include new asset classes such as cryptocurrencies, renewable energy, and ESG-related assets can help attract eco-conscious clients and align with global trends. Improving the client experience through comprehensive educational resources and dedicated support can strengthen both acquisition and retention.

While regulatory challenges persist, they contribute to a more stable and trust-based environment, allowing only well-capitalised and compliant brokers to operate. Brokers that can adapt to regulatory changes and continue innovating will be better positioned for long-term growth.

Cork’s sustainable revolution: from stoppers to aerospace

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Cork is one of nature’s most remarkable materials. It is a renewable, biodegradable, and versatile resource, cyclically harvested without damaging the trees it comes from. It grows in the Mediterranean, where, for centuries, cork oak forests have not only supported a diverse ecosystem but also acted as vital carbon sinks, capturing large amounts of CO2.

Recognised as World Finance’s Most Sustainable Company in the Wine Products Industry, at Amorim, our role has been to take this naturally sustainable material and find new, innovative applications for it. Though most widely known for cork stoppers, which we produce at a scale of over 5.6 billion annually, cork is being utilised in increasingly diverse industries. Our work spans from creating products for the aerospace sector to eco-friendly sports infills, demonstrating the adaptability and potential of cork beyond its traditional uses.

Innovating with every stopper
One of the key areas of our business remains the production of cork stoppers for wine, spirits, and sparkling wines. Each day, we manufacture over 22 million stoppers, serving markets like France, Italy and the US. But it is not about quantity – our research and development team continues to refine the quality and sensory performance of these stoppers, ensuring they meet the highest standards.

A critical part of our sustainability actions involve responsible forest management

A major breakthrough has been our ability to produce cork stoppers with non-detectable levels of the molecule Trichloroanisole (TCA), a compound that can affect wine. This achievement combines traditional craftsmanship with scientific research and innovation, benefitting both winemakers and consumers.

Cork processing companies are a driving force in creating an economic interest for forest owners to maintain their properties. As such, cork stopper production, as the most valued product in this ecosystem, makes a significant contribution to climate change mitigation, making it a much more sustainable choice than alternatives such as aluminium or plastic.

A key principle in our operations is ensuring that no part of the cork goes to waste. Any cork that is not used for stoppers is repurposed into other applications, from flooring and insulation to advanced materials for industries like aerospace. This approach allows us to operate within a 100 percent circular economy, where every byproduct is transformed into something valuable.

Amorim Cork Composites is a prime example of how this circular economy works. The by-products originating in the cork stopper manufacture are ground down and used to develop innovative products, demonstrating how sustainability and innovation can go hand in hand. With the growing demand for sustainable materials across a variety of industries, we are constantly exploring new applications for cork.

Forest management and climate action
Our work is not limited to what happens in the factory. A critical part of our sustainability actions involve responsible forest management. Cork oak forests not only supply the raw material we need but also play a vital role in capturing CO2. We have implemented innovative practices to make cork oaks more resilient to climate change, pests, and diseases, while also planting new forests and improving the health of existing ones.

In fact, through a combination of research and intervention, we are working on decreasing the time it takes for the first cork harvest from 25 years to just 10–12 years. This increases the economic interest and viability of the forest.

For every tonne of cork harvested, the forest is capable of sequestering up to 73 tonnes of CO2

Cork oak forests are one of the world’s natural carbon sinks: for every tonne of cork harvested, the forest is capable of sequestering up to 73 tonnes of CO2. This ability to capture carbon and retain carbon for long periods of time, since the tree is not cut down and lives an average of 200 years, makes cork one of the most environmentally friendly materials available today.

According to a life cycle analysis conducted by PwC Naturity, cork stoppers are significantly superior to artificial closures in five of the seven indicators analysed. Namely, non-renewable energy consumption, solid waste generation, contribution to the formation of photochemical oxidants and the contribution to the eutrophication of surface waters and greenhouse gas emissions. These findings reinforce cork’s position as a sustainable material with significant environmental benefits, particularly in reducing our carbon footprint.

More than 150 years of history
Corticeira Amorim is the largest global exporter of cork and the oldest cork company in the world in continuous operations since 1870. We are also the world’s largest cork processing company, with a presence in almost 30 countries in five continents and the largest distribution network in the sector. We have a diversified client base of over 30,000 customers and more than 93 percent of our sales are made outside of Portugal, where we are based.

Sustainability is deeply rooted in Corticeira Amorim’s DNA, and we are proud to see our efforts recognised with this award, which highlights our commitment to efficient resource management, sustainable consumption, process circularity, ecosystem protection, and the development of our people.

Nigeria’s success in harnessing investment

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Total revenue for investment banking in 2024 is projected to hit $142.16bn, fuelled by a sharp increase in private equity activities, growing capital demands, and the adoption of sustainable finance practices. The market is expected to grow to $194.05bn by 2028 with further developments in AI-powered solutions, digital assets and the deepening of ESG initiatives. The future of investment banking will be shaped by advancements in tech and adherence to sustainability.

The past year has marked a pivotal period for the investment banking sector in Nigeria, one of Africa’s largest economies. An increasing need for capital is spurring capital-raising activities, mergers and acquisitions, and sustainable finance across key industries like financial services, telecoms, real estate, consumer goods and energy sectors.

Coronation Merchant Bank (Coronation MB) is an adviser to corporates and governments and is positioned to harness these opportunities. The four trends that will shape the future of investment banking in Nigeria are: commercial paper (CP), infrastructure investment, mergers and acquisitions (M&A) and Islamic finance.

Commercial paper
In a rising interest rate environment, with a need for alternative sources of funding from expensive bank loans, commercial papers have emerged as a vital source of working capital finance for investment-grade corporates. In 2022, Nigerian companies raised ₦1.5trn ($910m) via CP issuances (₦252bn – $153m – in 2022). This growth in issuances underscores the importance of CPs to corporates at a time of prohibitive bank loans.

Corporate issues span various sectors from manufacturing, financial services, health, agriculture, and the retail sectors of the Nigerian economy, reflecting the wide acceptance of this mode of working capital financing. Some major transactions in 2023 were MTN Communications’ ₦374bn ($227m) raise across multiple issuances. Other CP issuances like Dangote Cement, Flour Mills of Nigeria and Nigerian Breweries had issuances of ₦150.97bn ($92m), ₦221.28bn ($134m) and ₦116.49bn ($71m) respectively.

We expect more corporates to continue to leverage M&A to achieve strategic growth

Of the several commercial papers raised during the year, Coronation Merchant Bank raised an aggregate amount of ₦343.43bn ($209m) for Dangote Sugar, Dangote Cement, and 27 other issues with a view to increasing our activities in the space going forward.

The CP market is not without its attendant challenges, ranging from inflationary pressures to the various monetary policy measures put in place to curb this. However, our long-term outlook for the CPs remains optimistic as corporates continue to search for working capital funding and the flexibility of CP programmes.

Infrastructure investment
Owing to the Nigerian infrastructure deficit, which necessitates investments of about ₦30trn ($18.2bn) over the next 30 years, fund managers have registered infrastructure funds of ₦1.5trn ($910m), with ₦230bn ($140m) raised over six years. These funds have been deployed to the health, transport, telecoms and energy sectors.

Coronation MB, the lead issuing house on the series one offer of the Coronation Infrastructure Fund, raised ₦8.79bn ($5.3m). This issuance represents the largest amount raised and the highest subscription percentage in the market for a maiden infrastructure fund, surpassing the previous rates of 33.375 percent and 24.70 percent made by similar infrastructure funds.

Within the next year, five fund managers seek to establish new funds, a testament to the increasing recognition of infrastructure funds as an investment class by institutional investors (pension funds, for example), some of which possess the largest pool of funds domestically.

Mergers and acquisitions
Following CBN’s directive to raise minimum capital requirements for deposit money banks effective April 2026, various banks have sought out means to recapitalise. The recently announced merger between Unity Bank and Providus Bank is a case in point, with more M&As to be announced by other deposit money banks in their bid to remain operational and competitive. Other M&As in financial services include Access Holdings’ acquisition of ARM, Sigma and First Guarantee Pensions, resulting in the second-largest pension manager by assets under management (Coronation MB acted as a financial adviser on all Access Bank mergers and acquisition transactions), CardinalStone’s acquisition of Radix Pension and GTCO’s acquisition of Investment One Pension Management.

In stockbroking, there was Zedcrest’s acquisition of RMB’s stockbroking arm. There was EverQuest Acquisition’s share sale and purchase agreement for a 100 percent equity stake in FBNQuest Merchant Bank.

Other sectors like energy, entertainment and fintech also witnessed M&A activities. These were the acquisition of Shell’s onshore oil and gas assets by some Nigerian businesses, Universal Music Group’s acquisition of a majority stake in Mavins Global, and Carbon’s acquisition of Vella Finance. We expect more corporates to continue to leverage M&A to achieve strategic growth, and Coronation MB is poised to advise on these transactions.

Islamic finance
The non-interest finance market grew by $0.76bn from $2.30bn in 2021 to $3.8bn in 2023, moving from 0.075 percent to 0.9 percent of the global finance market within the same period. This represents a viable opportunity for growth due to Nigerians’ large Muslim population and its currently unbanked demographic in the North-West and North-East.

The investment banking sector will be crucial in efficiently directing capital to support the country’s long-term success

There is increasing acceptance of non-interest finance with the introduction of ₦100bn ($61m) sovereign sukuk issued by FGN in 2017, and six subsequent issuances totalling ₦1.092trn ($664m) to fund infrastructure developments – 4,000km of roads and bridges – and the recent sukuk issuance in October 2023 for ₦652bn ($397m).

With support from regulators, CBN, SEC and FMDQ, there is ample room for growth for Islamic finance in Nigeria. Recently, Trustbanc, under the wakalah structure, established its first NICP programme under FMDQ’s revised framework, allowing companies to issue shariah-compliant short-term instruments. Coronation MB played a critical role as the first arranger of this NICP programme under the updated framework.

Nigeria’s investment banking sector is evolving to meet the unique financing needs of both corporates and the government. Key trends underscore the sector’s role in fostering sustainable corporate and economic growth. Commercial papers and Islamic finance instruments, such as sukuk, are vital for short- and long-term financing. Corporates can drive growth through organic expansion or M&As. The Federal Government’s increased use of sukuk for infrastructure funding, alongside private sector involvement, bodes well for Nigeria’s economic future.

Moving forward, the investment banking sector will be crucial in efficiently directing capital to support the country’s long-term success.

Peru’s pension system reform: the day after

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For years, Peru has been in dire need of a reform to its pension system. The approval of seven laws between 2020 and 2023, which allowed for ‘extraordinary’ withdrawals from individual pension accounts – meaning the withdrawal of funds that should have been reserved for retirement security – alongside regulation that approved in 2016 the withdrawal of 95.5 percent of account contents upon reaching retirement age, had distorted the system’s purpose. Additionally, only 30 percent of the country saves for retirement through the pension system, and multiple regulatory hurdles limit the adoption of more flexible saving regimes. This, together with the lack of a minimum pension, further underscored the urgency for change.

A few months ago, after extensive political and technical discussions, Congress approved a law to address this need, marking a clear first step in the right direction towards a more inclusive and effective pension system. Once the law is implemented by the Executive branch, which must officially set the rules and details for how the law is to work in practice, the next step will be to promote a national conversation about how we envision our future, as well as to refine certain aspects of the current reform.

We are making significant efforts to promote financial literacy

The important point, however, is that the deadlock has finally been broken and the benefits for Peruvians are self-evident. To begin with, the new law aims to put a stop to fund withdrawals, allowing nine out of 10 Peruvians participating in the private system – who are currently at risk of having no savings left in their accounts – to rebuild their retirement funds. Also, the law has established a minimum pension, conditioned to the individual’s saving discipline and frequency. Furthermore, it opens up the pension sector to increased competition, which should result in better services as fund administrators strive to attract participants. Additionally, new commission structures based on fund performance respond to user demands for different types of fees.

In short, the implementation of the new law can lead to a healthier and more robust pension system. The question now is: what happens the day after? As I mentioned, there is still work to be done on our journey towards a strong system. Much of this responsibility lies with the government, in its capacity to reduce the informal labour market and to address regulations that hinder competition. Our challenge now, as pension fund administrators, is to change how our affiliates, and Peruvians in general, value the pension system and to keep making efforts to get closer to them, and to innovate vigorously in a largely traditional industry.

But I must insist that we should not see this recently approved law as the culmination of the reform process. This is just the beginning. We still have to tackle, for example, the ‘auction’ process where a single winner among the administrators gets new affiliates automatically, which goes against increasing competition and allowing the creation of differentiated value, beyond fees, from fund managers.

Also, we need more commitment from the Government and the private sector in imparting information as to why it is important for people to save money in the pension system, employing new education methods based on behavioural science. We must not sit back and relax.

Transparency is key
At Prima AFP, we put our clients at the centre of our decisions, and an important part of that commitment is to make our services more approachable and transparent. For years, the pension system has had a distant relationship with its affiliates, partly due to the nature of the service itself – a long-term savings scheme intended to be accessed at the age of 65. Additionally, the system of individual capitalisation accounts, through which investments are made to supplement savings with returns, can be too arcane for some users to fully grasp. But we believe our affiliates deserve to know how the system works and to be informed about how their funds are performing – whether the results are positive or negative – and where their money is being invested.

As the reform progresses, it is essential for pension fund administrators to lead by example

We see this as a way to build trust with the people we work for and, also, to establish healthy channels for communication and information sharing. Our aim is to be empathetic, and with this in mind, when sending our monthly reports to our clients about their funds, we use simple graphs and language instead of complex and tedious investment jargon.

At the same time, we are making significant efforts to promote financial literacy, for example, through a series of online courses on our webpage and on our YouTube channel called ‘Ahorrando a fondo,’ where we address the most pressing questions about the pension system. Additionally, we have implemented special tools on our website that allow users to calculate their ideal pension and stay informed about the latest laws and regulations.

Simplify to include
Technology and digitalisation are vital to how we manage our relationships with clients, but we also see them as a path to offering more inclusive services. For example, there is no reason to make it difficult for independent workers to contribute to their pension funds. To simplify this, users can now add money to their funds using ‘Yape,’ Peru’s most popular digital wallet. This is a simple decision that can have largely positive consequences. Additionally, we have virtually eliminated the need to visit physical branches, as all our procedures can now be completed through digital channels. However, all this does not mean the experience at our branches has diminished in quality, as we continue to cater to the needs of all types of clients.

In general, at Prima AFP, we believe that as the reform progresses, it is essential for pension fund administrators to lead by example, offering transparent services, embracing innovation and promoting financial literacy. Building trust with our affiliates is key, while also ensuring we actively represent their interests in national discussions about the future of the pension system and, more importantly, the future of our country.

Early detection healthcare showcases the future of medicine

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Today there is a keen focus on longevity, with millions being spent on studying how we can extend life. However, perhaps even more important is ensuring we are in the best of health for however many years we have left.

Echelon Health was established 15 years ago in Harley Street with the aim of saving lives through early detection of disease. It brings together 30 years of clinical expertise, the most advanced imaging technology and unparalleled client service to offer some of the world’s leading health assessments available today. Its preventative health assessments detect disease at its earliest stage (usually before any symptoms) to maximise the chances of effective treatment. They allow its clients to establish a baseline for the condition of their health and recommend an appropriate onward lifestyle plan.

Top-of-the-range tech
To enable this quality of service, it uses the best technology. Its 3T MRI scanner and Aquilion One Prism CT scanner are the most advanced scanners currently in use worldwide. They are able to capture tumours as small as 1–2mm, and Echelon’s Platinum Assessment can detect up to 92 percent and 95 percent of preventable causes of death among men and women respectively.

The key to providing the best service is to have access to the best specialists and partners

Echelon Health is unique in recognising that no single scanner can assess all diseases. A combination of the most advanced MRI, CT and ultrasound technology, alongside comprehensive blood tests such as tumour markers, means every client receives the most comprehensive results currently available.

Echelon prides itself on excellence in customer care, prioritising safety, wellbeing and comfort. Your health assessment will be carried out by some of the highest trained radiographers in the country. The resulting high-quality images are interpreted by a select group of internationally renowned specialist radiologists. The assessment of all blood tests and imaging reports, as well as your personal consultation at the end of the process, will be done by one of the finest physicians consulting in Harley Street today. Should anything be found during your health check that requires further investigation, Echelon has a network of pre-eminent specialists and consultants. If necessary, it will provide rapid referral to a relevant specialist. Modern medicine is about specialism. Echelon Health recognises that the key to providing the best service is to have access to the best specialists and partners.

Independently verified
What sets Echelon Health apart is that their assessments are benchmarked not only against the top providers in the UK but also globally. “The service they are providing at present is, in my opinion, the best that can be achieved in current practice with existing knowledge,” said Dr David Wilson, Past President, British Institute of Radiology.

Success stories fuel the company’s passion. One client was diagnosed by Echelon Health with a cerebral arteriovenous fistula in his brain. This fistula was causing him no symptoms and would have been missed in a normal medical check-up. Post diagnosis, the client was immediately referred by Echelon Health to one of the premier specialists in the country and underwent a successful procedure a few days later.

Other clients include the British fashion designer Amanda Wakeley OBE, who says: “The combination of losing a seemingly healthy sibling to a brain tumour, a milestone birthday and 30 plus years of a highly stressful career were the catalysts for me in signing up for the Echelon Platinum Health Assessment.

“The follow-up consultation was reassuring but also revealed a couple of issues that my regular health checks would not have uncovered, and if left untreated would possibly have had an impact on my life at a later date. I feel encouraged by this health MOT, relieved to be aware of where my body is at and reminded to never be complacent or take my health for granted.”

The role of financial inclusion in Mexico

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Imagine living in a remote location, so remote that there is no bank and no access to financial services. While online banking and fintech have significantly reduced such cases, many people still don’t have access to the internet, particularly in rural areas, and continue to rely heavily on local bank branches. Additionally, some may not be familiar with digital financial services too, and therefore be ‘financially excluded.’

Banco Azteca explains: “According to the 2021 Encuesta Nacional de Inclusión Financiera (ENIF), 32.2 percent of adults (ages 18–70) in Mexico remain financially excluded, meaning they lack access to formal financial services such as savings accounts, credit, or insurance. This exclusion is especially prevalent in rural areas and among lower-income populations, with a noticeable gender gap, as men tend to have better access to financial products than women.”

Universal access
Financial inclusion ensures everyone, regardless of their location or background, has access to banking services, savings accounts, insurance, and payment services. Alejandro Valenzuela, Chairman of the Board at Banco Azteca, told World Finance that “financial inclusion in Mexico has progressed significantly.”

Citing the World Bank, Valenzuela adds: “As of 2021, 49 percent of the adult population in Mexico holds a formal financial account, leaving approximately 51 percent still excluded, particularly in rural and low-income areas.” Challenges remain to deliver affordable, responsible and sustainable financial services. To promote financial inclusion, the bank focuses on providing accessible services to underserved populations – particularly low-income households and rural communities.

Challenges remain to deliver affordable, responsible and sustainable financial services

“Today, Banco Azteca is the private bank with the largest branch network in Mexico, enabling it to reach people in remote areas,” Valenzuela says before adding that the bank’s “expansive presence, combined with digital initiatives, has played a critical role in reducing financial exclusion across the country.”

Banco Azteca thinks financial inclusion is vital for Mexico’s economic and social development. Valenzuela explains why: “It enables individuals to participate actively in the economy, reduce poverty, and build financial resilience. However, achieving true financial inclusion in a country as diverse as Mexico requires more than just digital solutions – it requires a phygital approach, a concept we embrace.”

Banco Azteca’s approach, known as the ‘phygital banking model,’ combines the convenience of digital channels with accessibility provided by its branch network. In 2023, over 705 million transactions were completed through the Banco Azteca app, breaking down geographical and infrastructural barriers. However, many Mexicans still prefer in-person interactions.

“This preference often stems from limited access to the internet, unfamiliarity with digital tools, or a personal choice for face-to-face assistance,” explains Valenzuela. Therefore, phygital banking is also about maintaining over 2,000 branches nationwide. Physical branches remain a critical part of the product mix, because in rural areas, anyone who is new to banking very much relies upon them for critical financial services.

Addressing financial exclusion
The bank invests in digital tools to widen access to financial services, considering preferences for digital or in-person access and personal circumstances. As a bank and the largest issuer of personal loans in Mexico, it wants to grant accessible credit to foster financial mobility and reduce inequality.

Improving financial inclusion in Mexico also involves financial literacy programmes. One of those initiatives is Banco Azteca’s ‘Aprende y Crece’ (Learn and Grow), which reached over 1.5 million people in 2023. This programme helps individuals learn essential financial skills with confidence, enabling them to use both in-person services at branches, and to utilise digital banking services. “By combining digital tools, personalised branch services, and education, we are closing financial gaps and empowering more people to participate fully in the economy,” claims Valenzuela.

The Mexican economy is growing modestly. In 2023 it grew by 3.2 percent, according to the official figures from INEGI. Despite this, the bank says income inequality is a major issue, with rural, low-income populations being the most disproportionately affected – limiting access to financial services. Modest GDP growth has highlighted the structural challenges Mexico faces, and the country’s sensitivity to external factors – such as slower growth in the US. Inflation has also impacted consumer purchasing power.

The money flow from the US is a major driver of financial inclusion in Mexico. It gives people access to formal financial services. Banco Azteca recognises the role the US dollar plays in the Mexican economy, especially through remittances, which reached a record $58bn in 2023. A strong dollar offers Mexicans financial stability and opportunities to save and invest.

Banco Azteca plays a crucial role in promoting greater income parity and universal access to financial services, fostering robust economic development. As a major recipient of remittances and a provider of low-entry barrier loans, especially in low-income sectors, Banco Azteca enables Mexicans to invest in education, housing, and entrepreneurial ventures. Its ‘phygital’ model and financial education strategy work hand in hand to drive economic development and financial inclusion, providing a transformative banking experience for all.