Chile - Financial Sector Assessment Program : Digital Financial Inclusion
Chile has achieved high levels of financial inclusion relative to its level of economic development across a number of headline indicators. Unlike in other countries, gaps in account ownership between men and women, rich and poor, older and younger...
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| Language: | English |
| Published: |
World Bank, Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099440107152219110/P17202003745650ea0811e02f3df054d83c http://hdl.handle.net/10986/37747 |
| Summary: | Chile has achieved high levels of
financial inclusion relative to its level of economic
development across a number of headline indicators. Unlike
in other countries, gaps in account ownership between men
and women, rich and poor, older and younger consumers, and
rural consumers are not pronounced. Remaining challenges in
financial inclusion include pockets of underserved segments
and opportunities to further increase in online payments and
digital financial services (DFS). There is also opportunity
to improve the availability of savings, credit, and account
products that are appropriately tailored to meet the needs
of underserved consumers. Greater digitalization of the
financial sector can help Chile to address some of the
remaining challenges for financial inclusion in Chile.
Several key elements of a well-functioning DFS ecosystem
could be strengthened. At a broader level, the Fintech Bill
should be passed to allow for greater innovation and
competition in the financial sector. A range of
opportunities exist to build off of Chile’s relatively
advanced national payments infrastructure to help further
expand in low-value retail payments and digital payments.
There are indications that interest rate caps have
inadvertently constrained access to finance for Chilean
microenterprises. Legal and regulatory reforms could be
considered to encourage microsavings. Banco Estado has
played a huge role in advancing financial inclusion in
Chile. To move to the next stage of financial inclusion, it
is recommended that a national financial inclusion strategy
(NFIS) be developed that is holistic and comprehensive. |
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