May 18

Viewpoint: How Emerging Fintech Can Help Latin America Deal With the Challenges of COVID-19

By David Dorr

Latin America has long suffered from economic instability, inequality and financial exclusion. The region’s economy has grown less than one percent per year since 2014, and Venezuela – once South America’s richest country – has a hyperinflation rate of 19,900 percent.

Access to banking is a critical issue for everyday people in Latin America, where only 51 percent of the population have bank accounts at a formal financial institution.

The sudden onset of the COVID-19 pandemic has therefore placed heavy strain on the region’s economies. As businesses are forced to adapt or close, more than two-thirds of business executives in Peru, Chile, and Colombia believe the outbreak will affect their company’s bottom line.

However, new technologies can help solve some of the problems threatening economic stability in Latin America.

Photo courtesy of Ava Systems.

Source: Latin America Reports (link opens in a new window)

Coronavirus, Finance, Technology
financial inclusion, fintech, startups