Does financial inclusion reduce informal savings? Evidence from Mexico

This study examines the relationship between financial inclusion and the continued use of informal savings in Mexico, using data from three waves of the national financial inclusion survey and instrumental variable techniques. Despite increased account ownership, informal saving practices have not declined. Findings suggest that financial access, infrastructure, and education alone are insufficient to change saving behavior. Policies should consider incorporating features of informal mechanisms, such as rotating savings groups or cooperative models. A deeper understanding of household motivations are needed, and future surveys must capture user experiences to design more inclusive strategies that address persistent financial inequalities.