1. Human Development Program Oportunidades Financial Inclusion X Hemispheric Meeting Poverty and Social Protection Network, November 2008

2. Helping break the intergenerational cycle of extreme poverty, supporting the development of capacities in education, health and nutrition for the families beneficiaries of Oportunidades. Objective

3. Oportunidades Interventions Component Older Adults Youth with OPORTUNIDADES (saving accounts) Education (Variable support) Health Emerging temporary support (Better Living) Component Energy Food OPORTUNIDADES covers the life cycle of the Beneficiary families Life cycle of persons and households

4. Components ComponentSupportAmount (USD) Description Food 17.7 (per family) Support to improve quality and variety of food products Nutritional complement for children under 5 years and pregnant or breastfeeding women Better Living10.9 (per family) Emerging support to compensate the international increase in food prices Energy5 (per family) Support for energy expenditure Health Health prevention (Línea de Vida and PREVENIMSS) Health and nutrition workshops Older Adults25 (per older adult) Support to members 70 years or older to improve their life quality Education Grants11.8 – 76.4School grants increasing from primary school 3rd grade to 3rd grade of secondary school Youth with Oportunidades 327 (per former grant recipient) Saving account for grant recipients that conclude the middle superior level.

5. Corresponsibilities ComponentSupportCorresponsibility Food Assistance to medical appointments of all family members Assistance to educational workshops to members > 15 years Better Living Energy HealthOlder AdultsAssistance of the older adult to a medical appointment by semester Education GrantsRegular assistance of grant recipients to school Youth with Oportunidades Conclude middle superior education before 22 years

6. Coverage Families 5 millions Persons 25 millions (25%) Children in nutricional control 1.7 millions Grant recipients 5’125,759 Primary Level 2’586,258 Secondary Level 1’768,341 Level EMS 771,160 Older Adults In towns of more than 10,000 inhabitants 92,112 Locations 92,961 Rural 89,839 (96.6%) Semiurbans 2,584 (2.8%) Urbans 538 (0.6%) Municipios 2,444 (100%) Entities 32 (100%) 3,412,383 68% Rural 697,838 14% Urban 861,253 18% Semiur ban

7. Transference Amount, 2009 Budget 2009USD 1 Food$1,042,470,000 Food Better Living$641,520,000 Energy$294,030,000 Older Adults$30,000,000 Grants and School Supplies $1,678,254,545 Total$3,686,274,545 1 11 pesos per dólar. Dispersion by BimestreUSD 1 Dispersion by Bimestre $614,379,091 Average bimestral amount per family $123

8. Type of Delivery of Monetary Support TypeFamily Coverage InstitutionsDescription Direct Cash Payment 3,882,000 (78%) TELECOMM (telegraphs) BANSEFI (development bank) Delivery of support in cash and in envelopes The representative of the beneficiary family has a Sheet of Labels with security elements. The cashier keeps one label to prove delivery of monetary supports. Payment in Account (deposit) 1,118,000 (22%) BANSEFI (development bank) Supports are deposited in a saving account at the name of the beneficiary Saving option 35% in branches and 65% in temporary offices

9. Type of Delivery of Support Payment in Account

10. Payment in Account, Coverage Coverage of Payment in Account has not encrease the 22% by limitations of infraestructure of the Development Bank (BANSEFI)

11. Payment in Account, characteristics Branches are in general very small, with only one teller window, therefore the delivery of supports is done …  In temporary offices outside branches  In open spaces established by the Program  Through mass callings  1,200 representatives a day by office (400 representatives atttended by cashier)  The representative may not make withdrawals at the teller window while the mass operation is under way (5 weeks)

12.  Around 95% of the universe of beneficiary representatives that receive support in a saving account, keep a positive balance.  Around 15% of beneficiary representatives (160,000) make deposits from other source of income in her saving account.  Around 134 thousand saving account of beneficiary representatives. The balance of these accounts is $9.4 million pesos:  Average saving term is 12 months.  At expiration date of savings more than 90% of beneficiaris renew the investment. Payment in Account, saving evolution

13. Financial Inclusion 2009 Activities

14. Delivery of Support in Diconsa Stores, rural zones  Company of state participation of the Social Development Sector.  Makes provision of basic products and complementry products to rural areas of high and very high marginalization, based on community organization and participation.  Use of pre-paid cards (initial stage)  Delivery of supports in community stores  Use of the store cash flow

15. Delivery of Supports in Diconsa Stores, rural z ones

16. Financial Inclusion in urban zones Aligned to the redesign of Urban Zones Program  Personal attention subsitute mass callings  Scaled Dispersion of resources  Annual Calendar of delivery of supports fixed by representative Localities Families Institution Months Elements Services  3  70,000  Bansefi  1-6  Financial Education  Debit card VISA  Saving account  ATM’s, POS and Bansefi branches  n/d  150,000  Bansefi  7-12  Financial Education  Debit card VISA  Saving account  ATM’s, POS and Bansefi branches  n/d  1,200,000  Banca Comercial  12-24  Financial Education  Debit card VISA  Saving account  ATM’s, POS and Bansefi branches  Other financial services

17. Reference Data  Only 48 % of the total number of municipalities in Mexico (2,443) have some sort of financial intermediaries.  One fourth of municipalities have more than one type of financial intermediary, Commercial Bank, of Nicho and intermediary of the System of Saving and Popular Credit (SACP).  In 52% of municipalities there is no presence of formal financial intermediaries, therefore their 11.6 millions inhabitants may consider themselves, in principle, as population not attended by the Financial System Source: Data published by CNBV, 2007; INEGI; Bansefi La Banca de Nicho: Autofín, Bancoppel, Azteca, Compartamos, AhorroFamsa. BC=Banca Comercial, BN=Canca de Nicho