Benchmarking Mexican Microfinance: Performance and Transparency in a Growing Industry

This report describes the current state of Mexicos microfinance sector. It aims to promote transparency and performance monitoring in the sector by using national and international performance norms to evaluate the performance of Mexican MFIs. The report uses data from thirty Mexican institutions, standardized and adjusted by MIX. Currently, Mexico has one of the most dynamic and rapidly growing microfinance markets in the world. However, the sector is also characterized by lack of transparency, inadequate performance monitoring and limited market information. While market information helps financial institutions form sustainable growth strategies and minimize risk, transparency aids in attracting new sources of funding to the sector. Providing a context for understanding the Mexican microfinance sector and the work of microentrepreneur-focused institutions, the report:

• Presents recent sector trends and challenges;
• Identifies zones with intense competition, as well as areas where MFIs are absent;
• Analyzes current Mexican market performance, comparing it with recent benchmarking information from the Latin-American microfinance industry.