Bogotá, November 2024 – Financial inclusion in Latin America remains an urgent and challenging issue, with 45% of the adult population still lacking access to formal financial services, according to recent data from Statista. This situation hinders economic development and perpetuates social inequalities. However, digital solutions are showing immense potential to transform this landscape, driven by innovation from the fintech sector.
While the lack of traditional banking infrastructure has excluded millions, emerging technologies provide an entry point for integrating more people into the financial system. These tools not only lower barriers but also promote economic stability and sustainable growth.
“The digital financial revolution is a crucial driver for inclusion,” says Mardiros Daghinian, CEO and Founder of VANK. “It’s essential to address gaps with innovative and secure solutions to ensure no one is left behind in this transformation.”
Here are the five key challenges to expanding financial inclusion in Latin America:
• Challenge: Unequal Access to Technological Infrastructure
Limited coverage of traditional banking in several regions has left many without viable financial options. Mobile platforms, which don’t rely on physical branches, are bridging this gap, providing an accessible alternative for payments and transactions.
• Challenge: Insufficient Financial Education
A lack of knowledge on managing personal finances is a significant barrier. In response, digital education programs are being developed to teach users how to safely and effectively use financial tools, empowering more people to take control of their finances.
• Challenge: High Costs of Financial Services
Traditional banking fees are often prohibitive, especially for international transactions. Digital solutions have drastically reduced these costs, making remittances and cross-border payments more accessible for families and small businesses that rely on these financial flows.
• Challenge: Distrust in Digital Financial Services
Security remains a major concern. New solutions implement advanced cybersecurity technologies and operational transparency, building trust and protecting users from potential risks.
• Challenge: Inclusion of Rural and Marginalized Communities
Rural areas are often the most affected by financial exclusion. However, with the expansion of mobile networks and the development of accessible tools, these communities are gaining access to financial services, connecting them to the global economic system.
The Impact of the Fintech Sector on Latin American Economies
The integration of fintech solutions has demonstrated that innovation not only benefits major urban centers but also has a multiplying effect in areas previously excluded from the financial system. This technological advancement drives key sectors, such as commerce and small and medium-sized enterprises, promoting economic growth and the competitiveness of countries in international markets.
A notable example is how cross-border transactions have become more efficient and accessible, particularly benefiting businesses seeking to expand their operations in foreign trade. In this field, VANK has positioned itself as a leader, offering cross-border payment solutions that simplify and streamline international trade transactions. These solutions enable companies to manage operations in multiple currencies and overcome the cost and time barriers associated with traditional methods, which is crucial for importers and exporters driving foreign trade in various countries.
“Our commitment to financial inclusion and support for foreign trade is unwavering,” emphasizes Mardiros Daghinian, CEO and Founder of VANK. “It’s about creating equitable opportunities and leveraging technology to positively impact the competitiveness and growth of businesses.”
Financial inclusion, coupled with the promotion of foreign trade, is a critical factor for the social and economic development of countries. As businesses gain access to digital tools for their cross-border operations, the fintech ecosystem, led by solutions like those from VANK, opens a world of opportunities for Latin America to connect more strongly and efficiently with the global economy.
For further press information, contact:
VANK Press Team
Isabella Santa and Diego Cabrera
Grupo Davinci Comunicación y Estrategia
Cell: 3217678043 / 3124071841