Final presentation of my Fulbright-García Robles grant to Zacatecas, Mexico. With support from the Universidad Autónoma de Zacatecas, Estudios del Desarrollo, this project investigated financial inclusion, microfinance, migration, and development issues during 2010-2011. Presented the 13 of May, 2011. The results will be published in a forthcoming book, "Perspectives on Development in Zacatecas".

1. Microfinanceand International Migration StrengtheningFinancialInclusion in Zacatecas, Mexico Matt Rolland Fulbright-García RoblesScholar, 2010-2011

3. Investigateadaptationsofmicrofiannceinstitutionsinhighmigrationregionsof Mexico;

4. Analyzeexistinggovernmentprogramsthatprovidefinancialandtechinalassistanceto migrant-owned businesses.

5. Interviews with microfinance institutions in four states: México state, Puebla, Guanajuato, Zacatecas;

6. SurveyofmigrantfinancialneedsinmigrantclubsintheUnited States;

7. Semi-structuredinterviewswiththesixgovernmentprogramsencouragingmigrant entrepreunership2

8. Financial Inclusion and Development “Theaccessand use of a rangeofproductsandservices by a population, underanadequateregulatoryframeworkthatprotectstheinterestsofconsumersanddevelopstheirfinancialopportunities.” -NationalBankingandSecuritiesCommisssion (CNBV) Promotethewell-beingandeconomicdevelopmentof a groupofpeoplethroughbetterfinancialservices. Become more productive Accessible Credit Financial Education Business Assistance Become less vulnerable Savings accounts Insurance Utilities payments

9. Composition oftheFinancialSectorin Zacatecas Credit Unions (Cooperativas) nationwide: 8% Total Bank Branches: 136 Important role of pawn shops: 30% all points of access to credit 4

11. 18% of the state population, compared to 10% nationwide, live in counties without bank branches5

13. 1.77 bank branches per 10,000 adults6

14. Indicators ofBank Use Checking accountsperevery1,000 adults Loans providedbyCredit Unions 7 Microfinance InstitutionsservingmoretosmoothconsumpioninZacatecasthanexpand business Very fewcheckingandsavings accounts

15. Business Use ofCredit Businesses in Zacatecas with loans, by number of employees Percentage of Businesses with Loans 8 Only 27% ofbusinesses in Zacatecas obtained a loan Low use ofcreditreflectsbarriersforsmallbusinessestoaccesscredit

16. Geographic Dispersion 51ofevery100Zacatecanslive in townswith a populationof 5000 orless 34%ofthestatepopulationlives in threecounties: Fresnillo (14.3%), Guadalupe (10.7%) y Zacatecas (9.3%) 9

18. OneofeveryfourZacatecanslives in a countywithhighormedium grade ofmarginalizationwherethereisonlyonebankbranchperevery 20,000 adults. 10

19. Small Businesses and Finance Extremely high dependence on small and micro businesses Employ 70% of the economically active population 98% of all businesses are small or micro (up to 10 employees) 11 Only 20% of micro-businessessoughtfundingtobeginoperating (ENAMIN survey)

20. MigrationandFinancialInclusion 12

21. Towards aTransnational Microbank Survey of Migrant Financial Needs Interviews and Comparison of Microfinance Institutions operating in high-migration areas Analysis of government programs supporting migrant entrepreneurship Motivation:OfMexican states, Zacatecashasthehighestnumberofbusinessfundedbyfamilymembersorfriendslivinginaforeign country

22. Conclusions Recommendations Observations High concentration of financial infrastructure in urban areas Challenge: bring financial services to rural areas Further, very low business use of credit, especially among micro-businesses There is a large opportunity for microfinance institutions to meet these needs in rural areas There exists a new space for collaboration between social development programs and microfinance institutions New government program to promote financial inclusion Open new channels of funding to support rural financing efforts (savings and credit services) Explore new programs to equip microfinance institutions to bring remittance payment services to rural areas 14

24. Dr. García Zamora and the Development Studies department, UAZ

25. FEDZAC and migrant leaders