A joint investigation released by the IMF, which revealed information on a hundred member countries, ranked Asia in the first place in the creation of Fintech. While in Latin America and the Caribbean, the new companies of Fintech are growing, although from a low base.
Both multilateral agencies undertook the investigation following the mandate of the Bali Annual Summit 2018. Which ordered to consider how technological innovation is changing in the provision of financial services, with implications for economic efficiency and growth, financial stability, inclusion and integrity.
The study found that most of the new companies in the region focus on digital payments and transfer services. Followed by alternative financing platforms and, in terms of payment services, the adoption of money services. Mobile in the countries of Latin America continues to be low, despite relatively decent mobile and internet services.
Promotion of financial inclusion
However, the text highlights that improvements in financial technology can promote financial inclusion, even to serve the unbanked population of the region. Only 21% in Latin America have access to formal credit or use a credit card, in fact, less than 50% of adults in Argentina, Colombia, Mexico and Peru have an account in a financial institution, said in the report.
Many authorities in the region have already begun to review their regulatory frameworks for Fintech, However, the speed of the regulatory response varies widely among economies, depending on the size and structure of their respective financial and financial markets, as well as the flexibility of existing regulatory and legal frameworks, the document emphasizes.
“The processes of electronic invoicing, digital banking and digital authentication are all efforts that drive towards more efficient and inclusive financial institutions in the region,” say the agencies.
In this regard, the governments of Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Mexico, Peru and Uruguay introduced a policy that established mandatory electronic invoicing.
Also published on Medium.