Remittances sent by migrants in the United States to their family members in Latin America are located outside the ‘traditional’ categories of space. Not only do they cross different geographical areas beyond nation states, they also move largely outside the formal spaces of banking institutions. Taking the example of financial markets in Mexico and based on recent studies on the impact of remittances on the financial sector, this article explores how remittances have the potential to transform local spaces and reduce some of the market failures that prevail primarily in rural financial markets. Abstract Remittances, the money sent by migrants to their families back home, are located outside ‘traditional’ categories of space in severe ways. Not only do not only do these smallscale financial transactions span the transnational space beyond the nation-state; you also miss out of the institutional space of the formal banking sector. Taking the case of financial markets in Mexico and building on recent empirical findings on the impact of migrants’ Remittances on the financial sector of the returning countries, this article explores how Remittances may lead to a transformation of local deposits by reducing scope of the market failures that prevail, especially in rural financial markets.