Alejandro Murat Hinojosa on financial inclusion | Infonavit
The New Economy interviews Alejandro Murat Hinojosa, CEO of Infonavit, on its mortgage programmes for low-income workersShow transcript
Infonavit, Mexico’s Institute of the National Housing Fund for Workers, is one of the largest mortgage lenders in Latin America. The institute transformed the way Mexico built homes, and today a quarter of the country’s houses have been financed by Infonavit. CEO Alejandro Hinojosa discusses the pillars of sustainability that Infonavit is built upon, and explains the different mortgage programmes it offers to help low-income workers realise their property dreams in a sustainable way.
The New Economy: Tell us about your mission statement at Infonavit, and your vision for Mexico.
Alejandro Murat Hinojosa: Well, the Infonavit was founded in 1972 by constitutionally minded. It’s mission is to generate progress in Mexico by accompanying the right holders throughout their housing needs, throughout their life. And generate net worth. Where do I see Infonavit in the next few years? I think the Infonavit has to approach towards four pillars. First, better co-ordination among the housing institution. Second, to reduce the housing deficit. Third, to transcend into a urban and social model, and fourth, to generate wealth and quality of life in the housing of our right holders.
The New Economy: How do you support and serve low income workers?
Alejandro Murat Hinojosa: What we have been able to do in the last years, is to establish a cross subsidy model that gives us the opportunity to establish more competitive interest rates. So that we can benefit the right holders and so that they can access housing financial products. Today I can tell you that out of the five hundred and seventy eight thousand credits that we gave last year, sixty-three percent were focused towards the right holders that were four times minimum wage under. So we are attending the lowest segment of right holders in our country and that is something very important for us.
The New Economy And so how do you serve the wider community?
Alejandro Murat Hinojosa: We have to consider five fundamental elements. Mobility and transportation, community building, re-identification and verticality, a commitment with the environment and information technology. How should we integrate these elements? We should integrate them in our financial products. By generating mortgages that can push through better public transportation, better infrastructure for our communities, and a great example of those financial products are the green mortgages. Out of the five hundred and seventy eight thousand mortgages we gave last year, almost four hundred thousand mortgages were focused to green mortgages. So this is a great example of how we are generating incentives for better urban sustainable development.
The New Economy:You’ve spoken about your green mortgages, tell us more about your sustainable programs and projects.
Alejandro Murat Hinojosa: Ok we have three great projects, as you mentioned, first, the green mortgage programe. What does this enable? This enables our right holders to generate savings in their energy and water consumption, but it also impacts Co2 emissions, which is fundamental for our environment. Second, the municipal competitive programe. Why is this important? Because today many municipalities or cities in Mexico lack the planning, the human resources, and the financial resources they need to generate communion. So this financial product that we have enables them to generate property taxes, and also maintenance fees. And this is important because it helps establish community, a great atmosphere and generate social and economic growth for our right holders. And third, a very important project which is to regenerate some housing developments that aren’t in the best shape today in Mexico. So what we have got done is going into this housing development and help the community to bring their housing development again to where they should be. Again generating better net worth, but also social impact and a great atmosphere for it.
The New Economy: Finally tell us about your plans for 2013.
Alejandro Murat Hinojosa: Three key take aways. First, our institutional framework. We will continue to consolidate our human resources, our financial stability. To make our operational mile one of the most efficient in Latin America and the world. Second, certainty to comply to our mandate, that means to continue to serve throughout their life, the right holders in their housing financial needs in housing and generate competitive returns for their retirement. And third, the great future opportunities. To establish better coordination to pass as I mentioned the opportunity of having a housing model to a more integral urban model that can attain and achieve serving our work holders with their necessities in housing. Three fundamental ideas into the future rental scheme, have a wider scope to serve the under served population of workers that don’t have the possibility of financial solutions in their housing needs. And renovation and increasing housing. And finally to have an important commitment in sustainability and in the environment toward the future.
The New Economy: Alejandro Thank you.
Alejandro Murat Hinojosa: Thank you very much