El Buen Fin 2022: A pathway for promoting financial inclusion and accelerating the payment and banking industry

Published on Dec 07 2022.

reading time 9 minutes reading

Since 2011, El Buen Fin has managed to position itself as one of the most relevant retail dates in Mexico. Proof of this is that the 2022 edition of “Black Friday Mexicana”, which takes place between November 18 and 21, is expected to move 195 billion pesos, according to its organizers. In addition, the El Buen Fin 2022 campaign includes initiatives that encourage the use of electronic means of payment to promote the formalization of the economy and advance in Financial inclusion.

Despite perspectives for reduced use of cash, the means of payment is still among the most used methods in Mexico. When it comes to technological advances favored by the pandemic, the advent of new means of payment and increased purchases via e-commerce, the country still has a long way to go in the payment and banking industry so that everyone can fully take part in the financial system.

In this context, El Buen Fin has played an important role in accelerating the industry. And we’ll discuss the opportunities to be explored based on this scenario. Check it out!

 

What is El Buen Fin?

 

Inspired by Black Friday from United States, El Buen Fin is a commercial event created in collaboration between the public and private sectors of Mexico.

As its name says, it takes places once a year for a whole weekend by providing discounts and offers in a number of online and brick-and-mortar stores. It is so called for being an opportunity for the Mexican stores to accelerate sales and wrap up the year with a good balance of financial movements.

In this 11th edition—and after two years where days were extended due to the coronavirus pandemic—El Buen Fin 2022 is back in its traditional four-day format, before the Mexican Revolution Day.

 

Who organizes El Buen Fin?

 

Several federal government agencies and private initiatives organize and support El Buen Fin, including the National Association of Self-Service and Department Stores (ANTAD), Concanaco Servytur (Confederation of the National Chambers of Commerce), Business Coordinating Council (CCE), Mexican Treasury Office and more.

Only companies registered for El Buen Fin can use its brand and logo, so establishments interested in taking part in it must register on the program’s website. In case some unregistered establishment uses its brand, it can incur in false advertising.

Read also | DeFi: Decentralizing finance is the next step

 

What are its benefits for companies and consumers?

 

Unlike other countries that have strong Black Friday campaigns, the sale season in Mexico has an organization centralized by private and government agencies, which means benefits for consumers and the retail.

Therefore, companies adopting the campaign are listed in the general directory and rely on the help from organizers and supporters. They also have access to free materials, resources and training courses.

As for consumers, they can access a special page at the Office of the Federal Prosecutor for the Consumer (Profeco), where registered stores are listed and a price comparison is provided. Also, Profeco inspects establishments to ensure regulatory compliance during El Buen Fin.

 

How does El Buen Fin encourage the use of electronic means of payment?

 

According to data provided by AMI in March 2021access to accounts in banks and fintechs in Mexico rose from 2017 to 2021, reaching a penetration rate of 45% in the latter. Despite the rise and its second largest GDP in Latin American (only behind Brazil), the country still shows one of the lowest penetration rates in banking accounts, which impacts on their levels of financial inclusion.

barriers to financial inclusion

Given this context, El Buen Fin seeks to contemplate initiatives that encourage the use of electronic means of payment, promoting the formalization of the economy, reducing the use of cash and advancing in the banking.

The results have met expectations in that sense: 5 out of 10 purchases during El Buen Fin 2021 were made using a credit card products, which represented 21% more than in the previous year. According to data from the Association of Banks of Mexico (ABM), the use of cards represented 29% of total sales in the last edition of the event.

 

Prize draw for purchases using cards

 

In order to encourage the use of electronic payments, El Buen Fin conducts an annual prize draw in December. Everyone making purchases starting at 250 pesos and using debit or credit cards are able to enter it, during the offering period. Prizes are up to 250 pesos. The establishments participating in the campaign can also join by entering in a specific category.

 

Advantages for consumers in payments using credit cards at El Buen Fin 2022

 

1. Interest-free installment

 

One of the advantages in El Buen Fin is the possibility to pay in installments, with the usual installment offering without interests. Although some establishments don’t make this mode available, a lot of banks enable such benefit so that their customers can keep shopping.

2. Special offers

 

There are offers enabled exclusively for purchases using credit cards, which are not available for other payment methods.

3. Cashback bonus

 

A lot of banks have credit cards offering points and cashback programs, which are driven during El Buen Fin, with existing campaigns for El Buen Fin 2022.

 

Read also | Open X: What’s next after Open Finance?

 

Beyond El Buen Fin 2022: Scenario for the Mexican payment and banking industry

 

As we have seen, debanking maintains the strength of cash in Mexico. The main reasons for unbanking in the region include high banking fees, lack of trust in banks, difficult access for rural population and other excluded populations, such as people from lower classes, women and indigenous peoples.

As seen in the graph below, payments in cash still represent 44% of all transactions in physical retail in Mexico.

mix of payments in mexico

Another factor that draws attention is the amount of cards existing debit cards in the country compared to the number of credit cards, according to the following data:

  • 157,8 million debit cards (2020);
  • Average of 1,7 debit card per person at 15 years old or more (2020);
  • 27,7 million credit cards (2020);
  • Average of 0,3 credit card per person at 15 years old or more (2020).

At the same time that the scenario includes initiatives such as those promoted by Buen Fin XNUMX, with actions that encourage the adoption of electronic payment methods, it also opens up space for different players to accelerate their strategies to transform the market. Regulators, traditional institutions, fintechs and companies must implement actions beyond the days of El Buen Fin to ensure that the Mexican population can in fact have access not only to digital means of payment, but also to other services – such as credit, investments, insurance, etc.

 

 

Dock keeps a close eye on the growing financial universe in Mexico

 

For over the last years, we’ve supported Mexican banks, fintechs and companies incorporating financial services to their businesses so that they can keep up with the growing payment and banking industry in the country.

That’s why we’re prepared to enable our clients—and their users—to make the most out of opportunities in events such as El Buen Fin 2022 through our global platform for financial solutions.

Want to learn more about how to enable businesses in the industry to achieve anything they want? Watch our video manifesto:

 

Buen Fin 2022: Takeaways from this article

 

  • El Buen Fin in Mexico is similar to the American Black Friday, and it will take place from November 2022th to 18st, 21;
  • Unlike other countries that have campaigns similar to Black Friday, El Buen Fin 2022—the sale season in Mexico—has an organization centralized by private and government agencies, which brings benefits for consumers and retailers;
  • El Buen Fin 2022 campaign covers initiatives encouraging the use of electronic means of payment to promote a banked economy and advance financial inclusion;
  • While also offering advantages and benefits for the use of debit and credit cards, El Buen Fin promotes a prize draw for purchases using those payment methods;
  • The Mexican commerce in general will offer advantages for payments using credit cards, and the banks themselves will facilitate interest-free installments during El Buen Fin;
  • The unbanking scenario also brings opportunities for companies and investors form the payment and banking industry to grow, by following the example of the “as a Service” movement and cards in e-commerce.

 

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