Challenges of financial and digital inclusion for small-scale fishers in Mexico

Abstract

Small-scale fisheries contribute 50% of the global catch, providing the most significant proportion of products intended for direct human consumption, ensuring food security, and generating millions of jobs and livelihoods. However, they face challenges that require solutions from multidisciplinary approaches. These include digital exclusion and the inequitable financial system, which limit the effective, efficient, and sustainable development of the activity. If left unaddressed, this will widen the gap with sectors competing for ocean use. Given the lack of studies, this research was developed, using La Paz Bay, Baja California Sur, Mexico, as a case study, to determine the levels of financial and digital inclusion in the sector and propose actions to reduce economic vulnerability and improve inclusion. We compiled information through organized and systematic searches. A structured survey, designed with the support of community leaders, was administered to 46 economic units. The results were validated in a participatory workshop. Among the findings, the aging population stands out, with a low level of incorporation of young fishers, a predominant primary education level, and more than 15 years of experience. Cell phone use dominates in technology, with limited use of computers and fishing equipment. While debit accounts are common, access to mobile applications and bank credit services is limited. The most common financing is for working capital, which is provided through family networks and local lenders. It is recognized that less than 45% record and analyze their financial transactions, and only 8% do so using technology. More than 60% are interested in learning about basic finance and the use of technology. It is recommended that financing policies for the sector be reviewed and financing schemes based on flow analysis in banking institutions be proposed. We consider it is essential to direct efforts to strengthen the financial literacy of individuals and organizations.