Only 5% of companies request financing from non-bank intermediaries

The National Banking and Securities Commission (CNBV), in collaboration with the National Institute of Statistics and Geography (INEGI) presented the National Survey of Business Financing (ENAFINE) 2021 a project that aims to collect updated statistical information on the needs, sources and conditions of access to financing of private non-financial companies in Mexico, as well as the use of financial services.

“The development of Finance system It affects the economic performance of a country through the financial inclusion of companies, thus making it easier for companies to have access to financing and other financial products and services, particularly for smaller ones, at all stages of the business cycle. business is important so that more companies can start, develop, grow and contribute to social development”, indicates the CNBV.

In the results presented this year, the ENAFIN 2021 offers relevant information on the factors that affect the economic development of the companies surveyed, which were mostly formal companies.

Of the companies represented, 50% are registered under the tax regime for individuals (37% business activity, 13% tax incorporation) and 47% as legal entities (45% under the general regime, 2% for non-profit purposes). About 2% of the companies reported not being incorporated into any regime or before any authority.

With regard to the requested financing, most of the companies, regardless of their size, indicate that they turn to commercial banks to make their first credit request (66%). And for one in five companies that have applied, suppliers were the first source they turned to. Only 5% of companies resorted to non-bank financial intermediaries (NBFIs), which include Sofomes, Socaps, Sofipos y Credit Unions, for your first request. 4% of the companies requested their first financing from government programs, being more common among micro-enterprises.

It is indicated that a fundamental element that could be limiting the financial inclusion of these companies in particular is the limited knowledge they show about the sectors, entities, authorities and products that make up the base of the financial system. This can lead to companies not being informed of the different alternatives they have to meet their financial needs, unaware of the protections they have as users of financial services, and ignoring the channels they have to file complaints and obtain solutions to problems with these.

A simple way to measure the knowledge that companies have is through how much they recognize the members of the financial system. The survey reveals that among the country’s companies, commercial banking is generally recognized, while other entities in the system are notoriously less well known.

“While 95% know commercial banks and more than 70% brokerage firms, only half say they know development banks. Knowledge of non-banking financial intermediaries is even less widespread, being the entities of the popular savings and credit sector the ones that present a recognition of less than 40% among companies. Crowdfunding entities, or crowdfundingare the least known, which could be explained by the shorter operating time of this sector in relation to its counterparts”.

They point out that it is clear that there are still important challenges to overcome, particularly for micro, small and medium enterprises in Mexico. Furthermore, considering that the MSMEs are the source of most employment in almost all the world’s economies, it is worrying that these are the ones that most often suffer from obstacles and restrictions to access financing.

Likewise, the study reveals that around 16% of the companies in the country do not have a deposit account, and a relevant proportion of these answered as possible reasons the lack of interest in 41% and the fact of considering not needing it in 26 percent. Although this may suggest that voluntary exclusion is playing a relevant role in the lack of an account, companies frequently reported factors other than these and on which it is more feasible to influence.

Finally, one of the most significant changes observed in relation to the survey that was presented in 2017 is the increase in the use of digital banking services, which may be related to the response of companies to activity restrictions and other effects derived from the pandemic. The penetration of internet banking went from 40% of companies in 2017 to 61% in 2020. A greater increase was observed in the use of mobile or cell phone banking, which stood at 34%, an increase of almost 30 points percentage (pp) compared to what was reported in 2017. This result is consistent with a greater digitalization of companies, which is also observed in aspects such as collection and sale mechanisms, and marketing and promotion strategies.

alba.servin@eleconomista.mx