Driving Growth Through Banking in Informal Economies

In the world’s largest informal economies, banking is not about competing with sleek digital banking apps or advanced analytics. It is about creating financial systems that make formalization possible. For millions of people working outside the formal labor market, financial services are not a convenience—they are the foundation of security, stability, and opportunity.

The Scale of the Challenge

Latin America illustrates the magnitude of the issue. According to the World Bank (2022), more than 200 million adults in the region remain unbanked. In Mexico alone, over 55% of the workforce is employed informally (INEGI, 2025). Without access to credit, deposit accounts, or mortgage options, most workers rely on cash and informal arrangements to manage daily life. The absence of checking accounts and structured savings products limits both economic stability and upward mobility. For banks, this is both a challenge and an opportunity: how to design financial systems that genuinely address the needs of excluded populations.

Rethinking the Financial Value Chain

Serving the unbanked requires reimagining every link in the financial value chain, not simply simplifying premium offerings:

• Origination: Onboarding unbanked clients often requires innovative solutions. Biometric identification, community-based verification, and user-friendly digital tools enable banks to extend services to customers who lack conventional documentation.

• Cash-compatibility: In cash-heavy economies, digital banking cannot replace cash—it must complement it. Hybrid systems such as cash-in/cash-out at local shops, mobile banking apps that function with limited internet connectivity, and easy-to-use interfaces are critical.

• Retention: Long-term financial inclusion means more than opening an account. Banks are introducing modular “account families” that evolve with the customer. A basic deposit or checking account can expand to include loans, credit cards, insurance, or remittances, aligning financial services with life stages and trust levels.

The Role of Trust and Presence

Technology is essential, but trust is equally important. In underserved markets, physical presence still matters. Bank branches, service points, and face-to-face interactions provide the reassurance that digital platforms alone cannot. When customers know where to go for support—whether for checking account issues, loan applications, or mortgage inquiries—they are more likely to engage with digital banking over time.

Building Sustainable Financial Inclusion

True inclusion is not about innovation for its own sake—it requires commitment. Banks must see financial inclusion as a guiding principle for product design, risk pricing, and service delivery, not just a compliance exercise.

Banco Azteca offers an example: integrating biometric onboarding, modular product structures, and hybrid service models that combine deposits, loans, and digital banking solutions. By meeting customers where they are—across both cash-based and digital ecosystems—such institutions prove that inclusion, when intentional, is both scalable and sustainable.

Closing Insights

Informal economies are not peripheral—they define the financial reality for millions. Addressing exclusion requires balancing digital transformation with human trust, and blending innovation with empathy. The banks that succeed will design systems that prioritize accessibility, resilience, and inclusion at scale.

• Interest rate flexibility will be key: products must adapt to the income volatility common in informal economies.

• Loans and mortgages tailored to small entrepreneurs and informal workers can unlock growth and asset-building opportunities.

• Future banking adoption will be defined by hybrid cash–digital ecosystems, ensuring no customer is left behind.

• Financial inclusion is not charity—it is a sustainable growth strategy that can expand deposits, credit portfolios, and long-term customer relationships.

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