Award category: Project Award – Civil Society (Winner)Organization:  Asociación Mexicana de Uniones de Crédito del Sector Social

(AMUCSS)Project Title: Red Confianza (2013 – ongoing)

Banking remittances as a financial inclusion and development strategy in rural and indigenous areas of México

Type of company: Non-governmental organization              Geographical scope: 22 states in Mexico through 96 financial institutions  Website: www.amucss.org.mx

About AMUCSS

AMUCSS is a nonprofit organization formed by a network of rural financial institutions and micro banks in Mexico. Since its inception in 1992, AMUCSS has accomplished a series of innovations that has made it the leader in linking remittances to financial intermediation in

the communities of origin. Linkages have a dual purpose: on one hand, to achieve financial inclusion of peasant and indigenous families in rural migration areas, and on the other hand, to boost remittances investment for development. It has successfully converted migrant remittances into savings. Remittance savings are reinvested as loans to promote local economic development.

Highlighted Innovation

Red Confianza (2013), offers a technological solution for remittance payments and transfer directly into savings accounts. Its main objective is the creation of a transactional financial ecosystem in rural areas enabling remote communities to be linked to the domestic and international financial system. An attractive business model for all chain actors: local financial institutions (card issuers), MASTERCARD, transactions administrators and remittance users.

Red Confianza and Envios Confianza encourages migrants to be connected to their communities of origin through effective models of educational marketing and promoting the proper use of debit cards, mobile banking and the creation a rural network of POS and financial correspondents.

Previous pioneer projects

Rural micro banks (1998) are a model of community financial organization in regions of high migration. It empower local leaders and adapts services such as savings, credit and micro-insurance for people in communities of origin and migrant families. Common savings create the pool of funds to onlend for agriculture and non-agriculture enterprises.

Envíos Confianza (Trust Transfers) (2007), a remittance transfer company that works as a network and links the global transfer to remote community financial organizations. It operates (15) of the most important remittance companies and a

network of 68 rural financial institutions (300) points of payment.

Highlighted Indicators

44 rural micro banks and a network of 65 financial institutions with 300 points of payment in rural areas of Mexico

Average banking penetration: 70% Reduction of 15% to 20% in remittance

transaction costs Annually serves 30,000 migrant families,

benefitting 59,000 people 7 out of 10 recipients of remittances

open a savings account. Total monthly savings mobilization: US$1.5 million