Mexico's incoming government, headed by President-elect Andres Manuel Lopez Obrador, will push for changes in the financial sector in an attempt to increase competition, said Barclays, a British bank, on Wednesday.

In its special report on Mexico, the bank stated that though July's landslide victory of the leftist National Regeneration Movement (Morena) party caused regulatory concerns, the new government could be a "positive" force for improving competition.

"With few details on how to arrive at this point, strictly monitoring legislative proposals will be imperative," said Barclays.

"However, we hope that social programs help to close the financial inclusion gap in Mexico, increasing the number of users," the institution added.

According to Barclays, competition in Mexico's financial sector is currently increasing although some companies are better prepared than others.

Barclays reported that banks currently face tight profit margins and are competing aggressively for the corporate market after the Central Bank of Mexico raised the key interest rate.

This is forcing small local banks to have more direct competition with larger regional banks.

However, for Barclays, Mexico's modest economic growth represents the greatest risk for the financial sector.

"Not only for obvious reasons but because it could also exacerbate political risks," said the bank.

Barclays suggested that the lack of results offered by Mexico's orthodox fiscal policies could lead to the new administration taking less conventional fiscal decisions, which in turn could have far-reaching implications for the economy in general.

On Dec. 1, Lopez Obrador will be sworn in as Mexican president, succeeding Enrique Pena Nieto.