Some time ago, Argentines adopted digital wallets as allies in their personal finances whether to consume, pay, save or invest. According to several private studies, nine out of ten people have used these tools at least once.
This growth is based on two pillars: technology that enables greater digitalization and accessibility of financial infrastructures and the needs of macroeconomic reality: the surge inflation AND failure to update larger denomination banknotes it makes handling physical money very inconvenient.
Furthermore, in recent years the Argentines have understood the importance of “not leaving the pesos alone”, which month after month lose purchasing power and seek options for investing those balances.
Both the Government and the financial ecosystem repeat that the final objective of this trend is to increase financial inclusion, in an economy where a large part of the population still remains informal and where the credit/GDP ratio It is among the lowest in the entire region.
In this aspect, the regulation and reorganization of macro variables can help this digital ecosystem add more and more people. A few years ago, fintech companies went in search of those who had historically been excluded from banks and who were condemned to manage themselves in the world of banknotes and had no alternatives for financing or investing. Today It appears the bill has been paid.but challenges remain.
According to data from the Central Bank, in the first half of last year almost the entire adult population of the country had access to an account, which at that time they amounted to 35.1 million.
The agency had also reported that the number of people who have both bank accounts and payment accounts surpassed 20 million in June 2023, or more than 55% of the adult population. “This trend would demonstrate that people are taking advantage of the opportunities offered by the system to access a variety of interoperable financial services,” the BCRA noted.
In the financial sector it is believed that this trend could accelerate rapidly if macro variables begin to be reorganized starting this year. A scenario in which inflation moderates and declines, in which exchange restrictions disappear and the economy begins to improve its reputation could be the starting point for improving access to the electronic devices, phones and tablets, necessary for operate in this universe, and at the same time an improvement in connectivity throughout the national territory.
At the same time, they agree that growth could accelerate if regulatory changes are made that serve as an incentive to increase the possibilities of using digital money, at the expense of cash. There are several regulations pending and the players indicate their willingness to do so reach a consensus both at the industry level and with regulators to be able to move forward in this direction during this year.
Source: Clarin
