Financial Inclusion in Mexico's Rural Populations through Banking Correspondents

Rural populations in Mexico face various challenges; among which financial inclusion stands out, since, through it, various monetary transactions can be carried out. The objective of this research is to analyze the effect of banking correspondents on the number of credit and debit card contracts, in order to observe their impact on rural populations where banking instruments are scarce. Therefore, a reduced VAR model and a Granger causality test were applied. Among the conclusions, it is highlighted that very few rural populations have banking correspondents, although they generate a positive effect, since they meet the demands of the population for financial products, such as credit and debit cards. This research, along with other similar ones, agree that financial inclusion is favored, applying the model of banking correspondents.