Financial Crime World

Network Expansion Drives Financial Inclusion in Peru

Peru’s financial landscape has undergone significant transformation in recent years, driven by the expansion of mobile phone networks and the growth of digital financial services (DFS). This report highlights the impact of this expansion on financial inclusion in Peru.

Enabling Environment for DFS

The expansion of mobile phone networks has created an enabling environment for DFS, allowing more people to participate in the financial system. Today, 77% of women and 81% of men in Peru have access to a mobile phone, making it easier for them to engage with digital financial services.

Growth of Digital Financial Services

The growth of DFS has led to an increase in digital literacy and financial education among Peruvians, which is essential for financial inclusion. This growth has also created new opportunities for people to participate in the financial system and improve their economic well-being.

Challenges to Achieve Full Financial Inclusion

Despite these positive trends, there are still several barriers that need to be addressed to achieve full financial inclusion in Peru:

  • Lack of Digital Literacy and Financial Education: Women from low-income groups and rural areas often lack digital literacy and financial education. DFS providers must invest more in addressing this issue.
  • Coverage and Affordability of the Internet: While 85% of Peru is covered by a mobile cellular network, there are still significant disparities in access to the Internet, particularly in rural areas. DFS providers must increase mobile phone penetration in these areas to ensure everyone has access to financial services.
  • Digital Identification (DNIe): The adoption of DNIe is still low due to the required investment to update IT systems and operations, as well as training personnel.

Conclusion

While there are still several barriers that need to be addressed to achieve full financial inclusion in Peru, the expansion of mobile phone networks and the growth of DFS have created a positive trend. With increased investment in digital literacy and financial education, as well as coverage and affordability of the Internet, DFS providers can ensure that everyone has access to financial services.

In summary, the expansion of mobile phone networks and the growth of DFS are driving financial inclusion in Peru. However, there is still much work to be done to address the challenges facing full financial inclusion.