The Golden Age for Pawnshops Current Social Factors that Drive their Success in the Mexican Market

Credit plays an important role in the world's finances, but what happens when it is impossible for a great part of the population to have access to it? Besides a mismanagement of personal finances, that have led to a continuous increase in performing loans and distressed assets; there are external social factors that prohibit consumers facing their obligations by basic financial instruments such as short time loans. When unexpected bills come up, these consumers often find themselves in a bind, and they must look to alternative products. In Mexico we have a potential market of 40 million people without access to the banking system and whose needs for flexible financial options are growing constantly. Today the banking industry serves only 20% of demand. Facing this scenario, and complimented by the factors discussed below, a huge opportunity arises for a last resort lender: The Pawn Shops.