With the aim of providing digital financial inclusion, connecting banking systems with community payments and using innovative technology, The People's Chamber seeks to be a new financial system that opens opportunities for all the community by benefiting from the credit and not only for those who receive remittances.
Behind this project is the Mexican Association of Social Sector Credit Cooperatives (AMUCSS) and its 30-year commitment to real and fair financial inclusion for the development of small communities.
AMUCSS leads a network of 140 community banks throughout Mexico, covering 34 indigenous languages, and 60 percent of the end clients of its network are women from marginalized regions, so they are intimately familiar with the needs of Mexican communities.
The Interledger Foundation supports the project as a way to boost the financial system through its technology to work directly with historically marginalized groups, and seeks to increase access to digital financial services by advocating for the adoption of an open source monetary network, powered by the Interledger Protocol (ILP).
The Chamber of People also includes a group of activists and financial specialists oriented towards social justice, in this way, all of those mentioned come together to launch the great financial project that is committed to the growth of small isolated communities where no one has invested for years.
Nowadays, means of payment are the most important financial sector that Mexicans require, the market increasingly demands transfer payments and digital payments, leaving aside those communities that do not execute it.
Isabel Cruz, president of AMUCSS, commented that this project "is a necessity for the communities, having 160 million remittances that reach Mexicans, plus the social support that is 600 million payments a year and the money transfers they make." people who emigrate to other states of the country?
At the moment, the project is in the authorization process by the Bank of Mexico and is expected to be approved this year 2024.
How does it work?
Through a technological network, local banks are linked to each other to create a total financial system, with the possibility of investing, paying, lending and receiving money, giving the community the opportunity to carry out more financial movements in the same place.
The Chamber uses cutting-edge Mojaloop technology to create a secure and efficient payments ecosystem. For their part, institutions only have to make a simple connection with the Chamber to benefit from all the financial services it offers.
By connecting rural financial institutions to the national payments system, people will be able to have remittances in a savings account instead of receiving them in cash, which will allow additional capital so that the institution in charge of each community can lend locally and invest each person in new productive projects that promote regional development.
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