President Calderon Announces Largest ‘Banking the Poor’ Effort in the World

Yesterday in the Mexican municipality of Batopilas, President Felipe Calderon announced “the largest banking access program in the world that is targeted at the poorest people.” More than 6 million families, all current participants in Mexico’s government public benefit program Oportunidades, would benefit from the Calderon’s efforts, which he explained would help reduce the gap between the rich and the poor.

Though details were scarce, Calderon promised that along with debit/prepaid cards, each beneficiary would have a bank account where their payments would be stored and from which they could withdraw money. Since there is no bank in Batopilas, recipients will access their benefits from retail stores Liconsa or Conasupo, in addition to being able to purchase life insurance.

The New America Foundation’s Global Savings and Social Protection Initiative is excited about this development, as we deeply believe that connecting savings accounts to government cash transfers is an extremely promising way to help beneficiaries graduate out of poverty. Needless to say, we will continue to follow this story closely.