Fintech and Financial Inclusion in Latin America and the Caribbean

Abstract

Despite some improvement since 2011, Latin America and the Caribbean continue to lag behind other regions in terms of financial inclusion. There is no clear evidence that fintech developments have supported greater financial inclusion in LAC, contrary to what has been observed elsewhere in the world. Case studies by national policy experts suggest that barriers to entry in the financial sector, along with a constraining regulatory environment, may have hindered a faster adoption of fintech. However, fintech development seems to have accelerated in the wake of the COVID-19 pandemic and with the support of recent policy initiatives.

Commonwealth Countries: Driving FinTech Innovation

“…The cost of traditional banking in Latin America and the Caribbean, as measured by the ratio of overheads to total assets, is the highest in the world (Rousset et al 2021). Across the Caribbean, the use of financial technology in the form of CBDCs promises to lower transactions and processing fees, improve efficiency and promote economic growth.…”

Hacia un modelo actualizado de educación financiera bursátil para los jóvenes

“…Este público suele mirar con desconfianza al mercado financiero, por lo que el desafío es doble: por un lado, apuntar a un nuevo segmento del mercado con especificidades diferentes al resto y, por otro, generar mayor confianza en el sistema financero (Finnovista et al, 2022;Colombo & Grandes, 2021;Purva, 2021). Gershenson et al (2021), la población de bajos recursos, los jóvenes y los adultos sin educación formal son los que más probabilidades tienen de ser excluidos del sistema financiero. Más aún, según una encuesta reciente hecha por Price Waterhouse realizada a 5500 millennials, todos nacidos entre principios de la década de 1980 y mediados de la de 1990, solo el 24% de los encuestados demostró tener conocimientos financieros adecuados (BBVA, 2021).…”