More than 2 million domestic workers in Mexico are virtually invisible to the financial system. They perform work as housekeepers, cleaners, cooks, carers, drivers, gardeners and doormen, among other professions. Nearly all are informally employed, which means they get paid in cash, make no contributions to a social security or pension fund, and are uninsured.
Yet many domestic workers have a relatively stable source of income (when work is available) and they are financially active. More than 75 percent of them earn up to only 58,000 pesos a year (about US$3,100).
In this environment, Comunidad4UNO (4UNO), an early-stage Mexican fintech startup and Catalyst Fund company, is tackling the dual challenges of financial exclusion and affordable insurance access among this market segment. The company is providing domestic workers with tailored and market-based financial products through their employers via an online marketplace, helping reduce their vulnerability to accidents, health issues and the financial challenges they can cause- read more.