Financial inclusion progress varies across Latin America; Peru and Bolivia trail

The financial inclusion score in Latin America increased to 44.2 out of 100 in 2022, a six-point rise from 2021, as per a Credicorp Capital study conducted by Ipsos.

The report shows an increase in individuals achieving financial inclusion, from 16% in 2021 to 25% in 2022 across eight measured countries (Peru, Chile, Bolivia, Ecuador, Mexico, Argentina, Colombia, and Panama).

Panama and Chile scored highest with 54.6 and 52.3 points respectively, while Peru (39.8) and Bolivia (38.3) lagged.

The financial inclusion level in these two countries remained below the regional average.

Although Peru saw an increase in product knowledge and mobile wallet usage, it experienced a decline in use and quality dimensions.

Despite a minor increase in access, Bolivia witnessed a decrease in use and perceived quality.

The study also analyzed the financial digitalization in the region.

The proportion of “recurrent digital users” rose to 31% for men and 28% for women, while “non-digital users” decreased to 55%.

However, 69% of the region’s low socioeconomic level citizens still do not perform digital financial transactions.

Younger age groups, 18-25 and 26-42, recorded the highest financial digitalization, while the proportion of non-digital users was higher among users aged 43 and above.

Encouraging internet access, financial education, and development of digital products can further financial inclusion in the region, stated Enrique Pasquel, Corporate Affairs Manager of Credicorp Group.