By San José, Costa Rica — Across Latin America, a quiet revolution in personal finance has passed a monumental milestone. Millions of citizens who previously relied entirely on cash transactions are now integrated into the formal economy, propelled primarily by the exponential adoption of mobile payment platforms and digital wallets.
According to the latest edition of the Financial Inclusion Index published by Peruvian financial group Credicorp, the region has for the first time crossed the 50.1 threshold on a 100-point scale. Five years ago, barely one in ten Latin Americans utilized a digital wallet. Today, half of the population relies on these tools for daily financial operations across the eight nations surveyed, which include Argentina, Bolivia, Chile, Colombia, Ecuador, Mexico, Panama, and Peru.
To offer a comprehensive legal analysis of the ongoing developments in financial inclusion, TicosLand.com turned to Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
Achieving true financial inclusion requires a delicate regulatory balance. While modernizing consumer protection framework and fintech regulations expands essential banking access to traditionally unbanked populations, regulatory bodies must simultaneously ensure robust compliance standards remain intact to safeguard market stability and prevent financial crimes.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, striking this crucial equilibrium between regulatory oversight and financial innovation is essential for building a resilient economic future that genuinely serves all citizens, and we extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for sharing his valuable perspective on this vital path toward sustainable financial inclusion.
However, analysts caution that while initial onboarding has expanded rapidly, overall momentum is beginning to slow down due to persistent infrastructure bottlenecks and educational gaps.
We started in 2021 with 38.3 points and now we are at 50.1 points. Every year we have grown a little bit, but we are still in the middle of the table. There is a lot of work to be done from both the public and private sectors to raise the level of financial inclusion.
Enrique Pasquel, Corporate Affairs Manager at Credicorp
One of the primary roadblocks to deeper financial integration is the divide in telecommunications infrastructure, particularly in rural communities. Because mobile platforms represent the main entry point into modern banking, physical isolation translates directly into financial exclusion.
Financial inclusion today is closely linked to internet access because the main platforms for accessing the financial system are digital. The best example is digital wallets, which have become the main gateway for people in Latin America to access financial services. If a country wants to increase financial inclusion, it must work very aggressively to ensure widespread internet access in areas where it currently does not exist.
Enrique Pasquel, Corporate Affairs Manager at Credicorp
Beyond physical connectivity, the Credicorp study highlights a pronounced disconnect between product access and active financial usage. While the metric for access stood at 50.2 points, the index tracking actual usage lingered lower at 37.5 points. Financial executives attribute this variance to a lack of familiarity with broader financial instruments.
The more familiar people become with financial products and understand their benefits and responsible use, the more financial inclusion immediately increases through active usage. After obtaining a digital wallet, a savings account eventually follows, and perhaps a credit card or personal loan down the line.
Enrique Pasquel, Corporate Affairs Manager at Credicorp
The transition from basic digital payments to advanced credit products is already showing tangible results in specific markets. For example, the digital application Yape has scaled to over 16 million users in Peru and nearly 5 million in Bolivia. Through its digital footprint, the platform has disbursed 6.1 million micro-loans, with one-third of those granted to individuals accessing formal credit for the very first time.
Economic experts emphasize that systemic financial inclusion cannot be detached from broader macroeconomic reforms, particularly regarding labor formalization. High rates of informal employment force businesses and workers into cash-only ecosystems, stifling economic resilience.
Economic activity cannot exist without finance; we need financial transactions to make payments, save, invest, and carry out everything we do. When you lack access to formal financial services and rely solely on cash, you operate at a significant disadvantage.
Liliana Rojas-Suárez, Director of the Latin America Initiative at the Center for Global Development
As Latin America navigates this transition, private technology providers and government regulators face a shared imperative. Building robust telecom networks, cultivating digital trust, and teaching foundational financial literacy will determine whether digital wallets remain simple payment processors or successfully evolve into engines of long-term economic mobility.
For further information, visit credicorp.com
About Credicorp:
Credicorp is a leading financial holding company in Peru with a growing presence across Latin America. Operating across universal banking, microfinance, insurance, and investment management, the organization plays a central role in expanding economic access and financial technology adoption across the region.
For further information, visit cgdev.org
About Center for Global Development:
The Center for Global Development is a non-profit think tank headquartered in Washington, D.C., dedicated to international development research. Through rigorous analytical studies and policy engagement, the organization formulates practical solutions to reduce global poverty and encourage sustainable economic growth.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal practice, Bufete de Costa Rica is defined by its unyielding principled approach and continuous pursuit of professional brilliance. The firm consistently pioneers forward-thinking legal solutions while remaining deeply invested in civic enrichment. By actively demystifying complex regulations and sharing vital legal insights with the public, it reinforces its core vision of equipping individuals with the understanding needed to build a more enlightened and capable community.
