Coronavirus Could Spark Demand for E-Wallets, Digital Banks in LatAm
By Francisco Miguel Aldaya
The coronavirus outbreak could drive financial inclusion in Latin America, as governments look for agile partners to distribute state aid and large segments of the informal economy grapple with restricted access to cash.
Digital banks and e-wallets could see an uptick in overall demand in different countries as quarantine and social distancing measures are rapidly turning digital transactions into a necessity in a region with a longstanding preference for cash, and where nearly half the population is unbanked.
“It’s time for the fintech slogan of financial inclusion to truly come into play,” Argentina’s Fintech Chamber President Ignacio Plaza told S&P Global Market Intelligence. “If the government keeps relying on us to help them distribute this aid through fintech wallets, people will start to use them more and more and become acquainted with their practicality and power,” he added.
Photo courtesy of Kevin Keith.