IFC and the Government of Spain announce program to boost the silver economy in Mexico

Mexico City, March 27 — The International Finance Corporation (IFC), a member of the World Bank Group, with the support of the Government of Spain, announced the official launch in Mexico of the Silver Economy Program, an initiative aimed at providing advisory services and financing to the financial sector to develop a market of products and services that meet the needs of people over 50 years old, with a special focus on women.

Mexico's population is experiencing accelerated aging. Currently, 30.43 million people in Mexico are 50 years or older, a number expected to rise to 53 million by 2050. This demographic growth, along with the diversity of unmet needs, presents a unique opportunity for financial institutions to develop innovative services tailored to the silver segment.

Juan Gonzalo Flores, Country Manager for IFC in Mexico, stated: “As people age, their financial needs and behaviors change, both in terms of access to credit and ownership of banking products. According to the National Institute of Statistics and Geography (INEGI, for its Spanish acronym), only 38% of the Mexican population between the ages of 60 and 70 has access to some form of credit, and only 2% receives personal credit. In light of this, IFC reaffirms its strong commitment to developing the silver economy in Mexico and the rest of the region.”

This initiative is a response to the increase in longevity in Latin America and the Caribbean. Life expectancy in the region has risen significantly, from 48.6 years in 1950 to 75.1 years in 2019, and it is projected to reach 77.2 years by 2030, according to the Economic Commission for Latin America and the Caribbean (ECLAC).

The Silver Economy Program offers a unique opportunity for banking entities in Mexico to innovate and expand their portfolio of financial services in savings, credit, insurance, pensions, and investments, with a gender focus. The silver population has distinctive financial characteristics and behaviors that have not yet been adequately addressed by the Mexican banking sector, making it not only a business opportunity but also a crucial area for sustainable development and social well-being.

Trust in financial institutions decreases as people age. The Silver Economy Program represents an opportunity for banks to work on strategies to regain that trust and promote financial inclusion.