Financial education is a high-priority goal of several countries across the globe. Its widespread positive impact is proven to enhance community development, social conditions, and global economic growth. Individuals with access to financial services are capable of making critical investment decisions in education, entrepreneurial endeavors, and retirement savings, and thereby lessening the poverty and unemployment rates.
To speak of Latin America, the financial inclusion remains very low, with almost 70% of the population being unbanked. The formal financial administrations are restricted to the affluent, with cash economy customarily ruling the region. However, the developing accessibility of portable innovations like mobile technology encourages access to monetary administrations and tools for every individual in today’s world.
With this access, Latin Americans can quickly develop responsible money habits, take ownership and accountability of finances, and eventually drive growth in the region as a whole. Mexico-based startup albo is the modern neobank delivering monetary training tools. With advanced bank account being their essential intrigue, they are additionally dedicated to advancing responsible money related dynamic.
Using this application, bank consumers can view their expenses and reports grouped by category. With this information, they can analyze their spending behavior and regulate those for better saving habits. Similarly, Destacame, a Chilean company, offers several products to help users manage their daily finances. With this app, customers can set up debt reimbursement plans, improve the record of loan repayment, access MasterCard choices, and use other monetary tools.
Another individual finance platform GuiaBolso offers comprehensive data on a buyer’s funds to aid them in money related choices. Here, users can manage bank accounts and credit cards seamlessly without any hassle. With the graphical representation of spending information, the app also offers some tips for budgetary improvement. Besides, it sends the financial data to banks and facilitates loans for individuals deprived of any access to credit.
Apart from offering financial literacy applications for adults, Latin American fintech startups are focusing on educating children. The game application of financial literacy ALFI provides financial education for youth by teaching them different concepts like interest rate, profitability, inflation, and risk assessment. This app has over 10,000 users across Peru, Argentina, Chile, Colombia, and Mexico. Besides, in 2019, it won BBVA’s Open Talent Perú.
Another fintech startup, by name Mozper, provides a debit card and a digital platform for kids. Parents can send money to their kids using this platform and set rules alongside on how to spend it. Parents are also provided with an ability to edit, approve, or deny transactions, and guide children’s with their financial decisions. The firm has lately closed a pre-seed subsidizing round of $770,000, which is intended to be utilized on product advancement and a pilot discharge for over 3,500 guardians who are on the waiting list for this debit card.
With these applications, fintechs are closing the financial literacy gap in Latin America. By educating the adults and youths of this region, the startups are helping them with the responsible financial decision-making process. This is said to enhance financial inclusion in this region, and help drive the economic and social cause.