That thefinancial inclusion be one of the key themes of the transition towards a more sustainable future we also know it in Europe: after all, we Italians are at the bottom of the class in this area, especially from the point of view of women. There is, however, an area of the world that is historically more backward than us, but where things are rapidly changing: theLatin americaThe phenomenon is being dealt with by The Economist,, which sees us potential driver of growth and a well-being that has until now been held back by excessively informal methods of saving and credit. In the world there are still almost 1,5 billion people who have not not even a bank account, and a good portion of these live in the part of the American continent that goes from Mexico downwards, where approximately 26% of adults do not have a bank account, a figure lower only than that of sub-Saharan Africa and Southeast Asia.
Changes in Financial Inclusion in Latin America
In some countries such as theArgentina the percentage is much higher, but for example in Mexico more than half of the over 15s do not have a bank account. The reasons? "Many people they distrust banks and do not have a good financial culture – writes the financial newspaper -. It also does not help that banks throughout the region often apply high commissions“. However, things are changing, also thanks to Covid which has accelerated the process of financial inclusion: “During the pandemic, with people locked in their homes, the digital transactions have gained ground compared to cash,” The Economist claims. And to make digital transactions it was necessary to open a current account in a credit institution, especially in Colombia and Dominican Republic where governments have imposed the obligation for all pandemic-related transfers, but also in Brazil where Pix was introduced, an instant payment system without commissions that has surpassed credit cards and is linked in any case to the bank account.
The boom in current accounts driven by fintech
The result is that between the 2014 and the 2021 Latin Americans with a bank account are increased by 6%, double the world average of 3% in the same period. A growing and thriving private fintech market, also thanks to the launch of open banking in the region, which allows and encourages financial institutions to share data, within strict limits of privacy and security. The Brazil for example it is among the world leaders in the sector: Nubank, founded in 2013, is now the largest fintech bank in Latin America, with more than 100 million customers and revenues of $10 billion. “This competition is reducing costs and pushing traditional banks to innovate,” he explains. The Economist,. However, there is no shortage of doubts, also because many people open accounts but then leave them inactive. Having a bank account does not necessarily translate into access to credit and in fact between 2014 and 2021 the adoption of credit cards and loans in Latin America grew more slowly than the global average.
Social challenges: gender gap, rural areas and inequalities
Finally there are the major social issues, starting with gender gap and by 'access to credit for the rural population, penalized compared to large urban centers. But above all, the greatest challenge of the area, historically characterized by very strong inequalities, is to ensure that financial progress does not aggravate them. "Latin America is in a phase of slow growth - concludes The Economist, – and financial inclusion is not just about where people keep their money: it stimulates savings, investment and entrepreneurship. On the contrary, lack of inclusion hinders growth and deepens poverty.”
READ MORE: Financial education, a right and duty of citizens. The FIRSTonline guide