Financial Inclusion Improves Post-COVID-19 In Latin America And The Caribbean

• Financial inclusion has long been discussed in relation to its positive impact on economies. The merits of financial inclusion are strongly rooted in empowerment when access to financial tools and credit are accessible and become enablers of positive societal and economic outcomes.
• According to the latest data provided by Mastercard and Americas Market Intelligence report, "The State of Financial Inclusion Post COVID-19", account ownership in the region has increased 20 percentage points, from 55% in 2017 to 74% in 2021, as cited from the latest Findex report. 
• This positive momentum is a clear indication that collaboration among ecosystem players has never been more relevant in accelerating the adoption and use of financial solutions across markets.
• However, the report highlights the prevalent gaps in access to the financial system in Latin America and the Caribbean, where 26% of adults still do not have an account.
• It is not just about having an account but rather about using it. Usage is a challenge in many countries, where large segments of the population may have an account but still use cash to pay for everyday daily necessities, and ownership of specific products such as credit cards or loans only reaches certain segments of the population in urbanised areas.
• Financial inclusion has become a foundational pillar for growth across the Latin American and Caribbean region and thus cannot be ignored. Countries are therefore faced with the task of striving to have a network of concurrent transactions that adequately promotes the acceleration of financial technology.

(Sources: Mastercard and Americas Market Intelligence)