Financial Inclusion in the Dominican Republic: Regulatory Body Takes Steps to Promote Access
Introduction
The Superintendencia de Bancos (SB), the banking sector regulator of the Dominican Republic, is working towards increasing financial inclusion in the country. As part of this effort, SB has established an innovation and financial inclusion team aimed at promoting products that support financial inclusion.
Guidelines for Basic Deposit Products
In order to promote financial inclusion, SB recently issued Circular 029-20, outlining guidelines on basic deposit products. These guidelines include:
- Special requirements for opening a basic account
- Simplified due diligence procedures
- Limitations for risk mitigation
Key Features of Basic Accounts
The basic accounts are optional for financial intermediation entities and provide the same level of security and quality as traditional deposit instruments.
- Service charges will be minimal.
- Accounts may be opened in person or non-face-to-face.
- Two types of basic accounts: basic savings accounts and basic payroll accounts.
Types of Basic Accounts
Basic Savings Accounts
These accounts focus on people’s access to banking services, providing them with a bank account for the first time.
Basic Payroll Accounts
These accounts aim at workers who have been excluded from the banking system due to legal or credit reasons.
Benefits and Features
The regulations allow for transactions such as:
- Deposits and withdrawals
- Payment of credit cards and loans
- Digital channels to view past transactions and make domestic transfers
Results
Since the circular was launched, 345 basic accounts have been opened in 28 provinces. Six financial intermediation entities have made these basic accounts available.
Initiative’s Goal
The initiative aims to break down barriers to access the financial system for underserved populations, with users approaching entities offering basic accounts with full confidence that they will find a product that opens doors to improve their household economies.