|According to the Ministry of Finance and Public Credit (SHCP), approximately 75% of Mexico's total population does not have access to the banking sector. This such segment is mainly the population of those with a low or mid-sized income, and it represents a huge growth potential for those financial institutions with the experience, systems, and human and material resources to serve them, such as Crédito Real.|
In the past years, the consumer loan segment’s growth has been boosted by non-banking financial institutions such as Crédito Real, as well as by small and medium-sized banks which focus on consumer loans, some of them associated with their own store chains.
The segment of loans for durable goods in Mexico is characterized by high competition. The major players in this segment are the specialized store chains which have their own financing programs, non-banking institutions such as Crédito Real and the traditional banks. This market's penetration is relatively low as compared with other Latin American countries, and this is why we consider that the demand of this type of loan will continue to grow in the future, as the GDP's growth allows a higher level of income to the domestic population and the expansion of the middle class with access to durable goods.
The payroll loans segment is fragmented and most of the players are regional competitors; only a few offer loans nationwide and have access to the securities market. As per the ISSSTE (Institute of Social Security and Services for Governmental Workers), the total number of the Mexican government's employees and pensioners, including federal, state, and municipal governments, is approximately 7 million people. The current potential penetration level of such credits in Mexico is under 34%, while in other countries, such as Brazil, it reached 50%, which stands as a great growth opportunity.
The group leans segment has a potential market, as estimated by Crédito Real, of 20 million people, out of which only 5 million are being served, so the remaining 75%, or 15 million people are potential clients. A study conducted by the Consultative Group to Assist the Poor determined that the loans granted by Micro-financing companies in Mexico only account for 0.2% of the GDP, which is quite less than the 5.0%, 4.0%, 2.4% and 0.4% reported for Bolivia, Nicaragua, Peru and Panama, respectively.