Regional Focus: Credit inclusion in Latin America — begini

Obstacles to financial inclusion

  • A history of hyperinflation in some areas of Latin America coupled with volatile economies
  • Poor credit infrastructure
  • Banks tend to charge high levels of interest
  • Some institutions require people to be in the top 20% of earners before they will even consider lending to them
  • Opening a bank account can be a complex process requiring excessive amounts of documentation
  • Economic informality
  • Lack of public policy incentives
  • High levels of poverty
  • Legal restrictions and those caused by regulations
  • High costs involved with banking
  • A lack of trust in banks

A region of contrast

How fintech is dominating the region

What is alternative data and how does it impact financial inclusion?

Final thoughts

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Credit where it’s due | Alternative data for character-based lending.

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Begini

Credit where it’s due | Alternative data for character-based lending.