Mexico’s burgeoning micro, small, and medium-sized enterprise (MSME) customer segment needs stronger financial products and services. Over the last decade, the Unique Registry of Gaurantees (RUG) in Mexico has sought to meet this need, with limited success. The RUG is Mexico’s current record to establish, protect, and mobilize movable collateral for alternative loan guarantees for entrepreneurs. The system is designed to increase consumer trust in credit and make loans more accessible. While the RUG demonstrates much promise, it falls short of meeting both financial services providers’ (FSPs) and customers’ needs.
With this Insight Note, Women’s World Banking hopes to articulate a way forward, especially for women entrepreneurs who make up the majority of low-income entrepreneurs and are less likely to have the fixed assets necessary for traditional capital requirements.