Fintech and Financial Inclusion in Latin America and the Caribbean

IMF Working Papers, August 20, 2021

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Canonical URL: Fintech and Financial Inclusion in Latin America and the Caribbean

Authors: Dmitry Gershenson, Frederic Lambert, Luis Herrera, Grey Ramos, Marina V Rousset, Jose L. Torres
Published: August 20, 2021
Series: IMF Working Papers
DOI: https://doi.org/10.5089/9781513592237.001

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.
Fintech development seems to have accelerated in the wake of the COVID-19 pandemic and with the support of recent policy initiatives.

Regional lag in financial inclusion persists despite improvements since 2011.
Lack of clear evidence linking fintech development to greater financial inclusion in LAC.
Barriers to entry in the financial sector and a constraining regulatory environment identified as impediments to fintech adoption.
Acceleration of fintech development observed following the COVID-19 pandemic and recent policy initiatives.

Subject: Economic sectors, Financial inclusion, Financial markets, Financial sector, Financial services, Fintech, Technology
Keywords: ACH Colombia, Asia and Pacific, Caribbean, cash transfer program, Central America, credit card payment, electronic cash, Financial inclusion, financial product, Financial sector, Fintech, fintech development, Middle East and Central Asia, per capita income, policy initiative, South America

IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Content summarized from "Fintech and Financial Inclusion in Latin America and the Caribbean", IMF Working Papers (2021), Issue 221.