Credicorp, a financial services holding company, released the fourth edition of its Financial Inclusion Index (FII), revealing a positive trend for the region. The study highlighted Chile as the leading country in financial inclusion, surpassing Panama for the first time.
According to the company’s press release, the report showed that 28% of the Latin American adult population achieved an advanced level of financial inclusion, a significant increase compared to 25% in 2023 and 16% in 2021.
The study, commissioned by Ipsos Peru, gathered data from eight countries: Argentina, Bolivia, Chile, Colombia, Ecuador, Mexico, Panama, and Peru. The index is built upon three key dimensions: access, usage, and perceived quality of the financial system. More than 13,000 individuals over the age of 18 were interviewed for the report.
In this edition, Chile topped the regional rankings with a score of 58.3 on a 0 to 100 scale, where a higher score indicates a greater level of financial inclusion. This is the first time Chile has outperformed Panama in this measurement.
The FII’s latest results also revealed that 47% of Chileans have achieved an advanced level of financial inclusion, compared to 38% in 2023. Additionally, 40% of the population is still progressing towards better financial inclusion.
“Over the past four years, the FII has become a key tool in understanding the challenges countries face in terms of financial inclusion. The results highlight the role of digitalization and the urgent need to strengthen initiatives that decentralize formal financial services,” said Gianfranco Ferrari, CEO of Credicorp, in the press release.
Chile’s Case
While Chile has consistently ranked among the highest in the region since 2021, its financial inclusion level had not significantly increased since the COVID-19 pandemic. However, this year, there were notable improvements in access, usage, and perceived quality of financial products and services.
Several indicators have improved steadily since 2021, particularly in the awareness and perception of financial products and services. Chile excels in the indicator measuring the “monthly frequency of use of financial products and services,” with the average Chilean using them 21 times per month, compared to the regional average of eight times.
Regarding access, there has been a reduction in barriers to using financial infrastructure and an increase in credit product ownership within the financial system. Furthermore, the proportion of Chileans reporting savings has grown from 30% in 2023 to 41% in 2024.
Chile stands out as one of the best users of the financial system in Latin America and, unlike the rest of the region, has found an alternative to digital wallets: debit cards. Digital wallet ownership remains low at 20%, the same as last year, compared to the Latin American average of 36%. However, 77% of the population uses debit cards to pay for everyday products and services (household items, cleaning supplies, food, etc.).
This is notable because debit card usage for purchasing goods and services surpasses cash usage in Chile, a trend not seen in other countries, according to Credicorp. Only 7% of Chileans report receiving their income in cash.
For Emilio Veiga Gil
For Funds Society, Madrid