Banking the unbanked
As much as 65 percent of the region's population is made up of so-called ‘unbanked’ people.
"Much like their American counterparts, Latin American banks are facing stricter regulation, greater competition and higher costs for training and technology. But financial institutions in Latin America face the additional challenge of trying to draw millions of people out of strictly cash economies into the use of banking and credit services.
[The Miami Herald/Factiva]
Bankers Target The 'Unbanked': Latin American Bankers Meet In Miami To Discuss Technology, Marketing And Ways To Attract Millions Who Use Just Cash.
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"Much like their American counterparts, Latin American banks are facing stricter regulation, greater competition and higher costs for training and technology. But financial institutions in Latin America face the additional challenge of trying to draw millions of people out of strictly cash economies into the use of banking and credit services.
As much as 65 percent of the region's population is made up of so-called ‘unbanked’ people. Adding new clients, along with coping with technological and marketing hurdles, was the focus for hundreds of Latin American bankers at the Strategic Conference on Technology and Marketing held Thursday at Miami's Intercontinental Hotel. Around 790 people are attending the three-day event sponsored by the Latin American Banking Federation. It wraps up today.
After a series of banking crises in the 1990s, Latin American banks have strengthened their banking practices and updated their technology -
sometimes after acquisition by foreign banks. But now they must expand their client base.
Micro-lending is one of the key ways to reach out to people who have never used financial services before, according to Nancy Barry, who served as chief executive of Women's World Bank for 16 years and now runs her own consulting business. ‘This is a huge market with potential,’ Barry said, adding that micro-lending can lead to people becoming familiar with other banking services.
She also described other innovations in Latin America that expose people to using automatic payment or debit cards or paying off loans, such as kiosks in Brazil where residents can pay their bills or Mexico's Banco
Azteca, an outgrowth of credit offers that started in the group's Elektra department store.”
