Financial Inclusion and Digitalization: Dynamics in LATAM

Summary

Both the processes of financial inclusion and digitalization have great potential for dissemination in LATAM, both of which are key to promoting well-being and productivity in the region.

Key points

• Key points:
• Convergence: in 2011, most countries started with higher levels of Internet usage than banking penetration
• E-commerce shows a positive relationship with financial inclusion
• A high percentage of the population (65%) made or received a digital payment, while of those who shop online, a considerable proportion do not pay digitally
• The use of internet banking grows with income level and in Chile and Brazil it is close to the average of high-income countries
• The pandemic boosted the uptake of digital retail payments (by card or phone) among LATAM adults. These increased by 33%

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