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Financial Inclusion Success Stories in Latin America with High Positive Impact

Published by Fintech Americas on Oct 18, 2023

Discover financial inclusion success stories from Bancolombia, Mibanco, Visión Banco, Finsus, and Grupo Autofácil.

Financial inclusion is an essential component of sustainable economic development and reducing inequality worldwide. Latin America is no exception, and financial institutions across the region are actively working to promote financial inclusion as a key tool to adapt and transform their operations, improve people’s lives, and optimize their services.

Although the importance of financial inclusion has been widely discussed, there is still much to discover in terms of real success stories within the region. To explore this topic further, this article examines the achievements of five leading financial institutions that have paved the way in promoting financial inclusion: Bancolombia, Mibanco, Visión Banco, Finsus, and Grupo Autofácil.

These organizations have not only embraced financial inclusion in innovative ways, but have also demonstrated how it can expand access to financial services, drive economic development, and improve quality of life within diverse and challenging economic environments. Their efforts have created greater equity, opportunity, and prosperity for individuals who were previously excluded from the financial system, contributing to the region’s sustainable growth.

Because all of these initiatives made significant contributions to improving the well-being and growth of the Latin American community, each was recognized with the Financial Innovators of the Americas Award, an honor granted by Fintech Americas to leaders and teams that challenge conventions, break barriers, and deliver revolutionary solutions.

Join us as we explore real-world examples that demonstrate the important role banks are playing in advancing financial inclusion in Latin America and improving the daily lives of millions of people.

Bancolombia: Democratizing Digital Payment Methods for Small Businesses in Colombia

Bancolombia’s (Colombia) project, “Democratizing Digital Payment Methods for Small Businesses in Colombia,” is an initiative that provides small merchants with an alternative payment method through QR codes that is convenient, secure, accessible, and easy to use. Additionally, through transactional data, the bank gains a deeper understanding of these customers, enabling it to offer credit products tailored to their specific needs.

This project had a significant impact on both the institution and its customers, with highlights including:

5x growth in the number of enabled payment points, ending 2022 with 1,405,000 physical QR payment locations.
Processing more than 106 million payment transactions.
Digitizing more than USD 1.747 billion.
An average of 2.3 million monthly customers making QR payments.

Mibanco: “Crédito Mujer”

Mibanco’s (Peru) “Crédito Mujer” initiative aims to facilitate access to credit for women in Peru who need financing to expand their businesses and achieve economic independence. This project was created in response to the financial exclusion faced by married women in the country, where banks traditionally required a husband’s approval before granting loans within this socioeconomic segment — a situation that, in many cases, could contribute to control and gender-based violence.

Since its creation, this Mibanco project has had a major positive impact as a driver of financial inclusion:

The percentage of women with access to credit in Peru increased from 35% to 40%.
Currently, 30% of women who obtained a loan for the first time in Peru did so through Crédito Mujer.
Crédito Mujer launched in 2017, and five years later had reached 120 million women and financially included 47 million of them while maintaining controlled credit risk.

Visión Banco: Vipay

Vipay, from Visión Banco (Paraguay), is an initiative involving the creation of a mobile application that allows customers to obtain a bank account, access the bank’s app, and receive an international virtual card, enabling them to make payments across multiple local and international platforms.

The project was highly significant for both the institution and society, generating strong impact on financial inclusion in Paraguay:

The solution generated nearly USD 150,000 in acquiring revenue from the use of transactional tools.
It also created operational savings of more than USD 200,000.
It streamlined customer onboarding by reducing processing time, eliminating the need for physical signatures, reducing operational processes, and eliminating physical card delivery since it is a virtual product.

Finsus: Democratizing Financial Services in Mexico

This initiative led by Finsus (Mexico) consists of creating a platform that allows any adult to securely access the formal financial system through a 100% digital onboarding process, simplified requirements (official identification and a smartphone), no account opening or maintenance fees, no minimum balances or annual fees, competitive rates starting from just 1 Mexican peso, guaranteed returns with monthly payments, money transfers using only a phone number, and no fees for bill payments.

This project is growing rapidly and supporting financial inclusion in Mexico. By the end of January 2023, Finsus had achieved:

More than 85,000 customers.
A 99% reinvestment rate.
87% of customers saving for the long term.
Nationwide presence without physical branches.
An active customer base across 31% of municipalities with fewer than 15,000 inhabitants.

Grupo Autofácil: Using Technology and Analytical Models for Financial Inclusion in El Salvador and Central America

This project by Grupo Autofácil (El Salvador), which supports financial inclusion, consists of creating a financing solution for vehicle purchases aimed at entrepreneurs, informal businesses, professionals, and independent workers. The initiative seeks to address financial exclusion affecting lower-income segments by offering an accessible and convenient financing solution.

Its role as a driver of financial inclusion is highly significant, as Autofácil has positioned itself as the leader in automotive financing in El Salvador with a 30% market share. Approximately 49% of its customers are businesses, informal entrepreneurs, professionals, and independent merchants who, without Autofácil, would not have had access to financing or would have been forced to turn to illegal loan markets with effective rates reaching up to 1,869%.

As a result, the company has financed 1 out of every 4 new cars in El Salvador and contributed to expanding access to credit for the country’s informal sector.

THE CONVERSATION ABOUT FINANCIAL INCLUSION CONTINUES AT FATV DEEP DIVE

A Deloitte survey conducted among 300 leading institutions revealed that 96% currently have financial inclusion projects underway. If your bank is following this trend, you won’t want to miss the next FATV Deep Dive program. During this two-hour event, leading industry experts will analyze the topic in depth and provide key insights for implementing innovative, profitable, and strategic financial inclusion initiatives that create meaningful impact for both society and your organization.

The event will take place on October 26, 2023, at 10:00 AM EST. Reserve your spot to:

Understand the present and future of financial inclusion in Latin America, focusing on achievements, major challenges, and how to overcome them.
Explore the key emerging technologies accelerating financial empowerment across the region.
Learn best practices, strategies, and tools for driving financial inclusion.
Receive your exclusive attendance certificate.