Latin America is fertile ground for innovation. Its diversity and the challenges it faces have driven the creation of new and creative solutions developed locally or brought from other regions in response to the needs of its population in various areas. The economy and financial sector are no exception.
Although efforts have been made to promote and expand financial inclusion, approximately 45% of Latin American adults still do not have a bank account, according to the World Bank. And those who do often encounter barriers related to time, costs, and bureaucracy in their banking procedures. Many still prefer to keep their money “under the mattress” and conduct transactions in cash.
Digital Wallets: A Business Opportunity in Latin America
In response to this challenging ecosystem, digital wallets emerged several years ago as an innovative alternative. Their value proposition focuses on overcoming cost, agility, procedural, distance, in-person, and excessive requirements barriers, while allowing users to build a credit history that can later help them access financing products—many of which are now being offered directly by digital wallets in LATAM.
This favorable environment has not only sparked the innovative spirit of local developers but has also attracted Fintechs and applications from around the world that see a growth opportunity in LATAM due to the high demand for financial inclusion solutions.
Communications as a Gateway to the Latin American Market
Communications play a key role in this expansion process—not only for brand visibility but also to build positioning and a reputation that supports business objectives and moves target audiences from top of mind to top of heart. This is fundamental in helping these companies successfully enter the Latin American market.
Given LATAM’s diversity, communications must be personalized and adapted to the cultural nuances of each country in order to create real impact and connection. Only then can potential users of these digital wallets be guided toward conversion and sustainable adoption of these financial solutions.
At Sherlock Comms, we have extensive experience in the Fintech sector and in the Latin American market, enabling us to design effective, localized communication strategies that truly connect with the target audiences of Fintechs entering the region.
The Rise of Innovation Serving the Region
Today, digital wallets in LATAM are well-established tools that continue to grow and have contributed to the democratization of financial services in recent years. The number of Latin Americans who currently have a digital wallet has quadrupled since 2021, rising from 11% to 43%, a 32-percentage-point increase.
According to the Credicorp Financial Inclusion Index, Argentina (77%), Colombia (73%), Panama (69%), and Peru (65%) top the list of countries in the region with the highest adoption of this type of product.
The use of digital wallets has also grown significantly: 40% of Latin Americans use them to make transfers and 22% to make payments and purchases, surpassing other digital tools. In terms of frequency, 36% of users report using them daily, positioning digital wallets as the most widely used digital financial product after cash.
A Challenge That Still Remains
Significant gaps persist between urban and rural areas, as well as between genders and income levels. Women and rural communities, for example, continue to face greater barriers to accessing financial services.
For this reason, much work remains to be done, and Latin America continues to be fertile ground for companies and developers worldwide who are part of the banking and financial solutions ecosystem to contribute to the democratization of financial services in the region. The time is now: the region demands innovation, closeness, and a deep understanding of its realities.
Having expert partners in communications and positioning, such as Sherlock Communications, can make all the difference to successfully entering and strengthening a presence in a market that is as dynamic as it is challenging.